COVID-19: Nigeria’s manufacturing sector contracts further
As the Nigerian economy contends with the effect of the COVID-19 pandemic, the manufacturing Purchasing Managers’ Index (PMI) has further contracted for the fifth consecutive time at 46.9 index points.
Manufacturing PMI for August sood at 46.5 index points.
This is contained in the Central bank of Nigeria (CBN) PMI survey report for September conducted by the Statistics Department and obtained from the apex bank’s official website, www.cbn.gov.ng.
Manufacturing is a sector which the government says is integral to sustainable economic growth and development.
Naturenews reports that the monthly PMI report on businesses is based on survey responses indicating changes in business activities compared to previous months.
The September PMI shows that out of 14 subsectors surveyed, four reported expansion above 50 per cent threshold, while 10 reported contractions.
According to the survey, electrical equipment; transportation equipment; cement and nonmetallic mineral products reported growth.
Subsectors that reported contraction are petroleum and coal products; primary metal; furniture and related products; printing and related support activities; food, beverage and tobacco products.
Others are textile, apparel, leather and footwear; chemical and pharmaceutical products; fabricated metal products and plastics and rubber products; while paper product subsector remain stable.
In specific terms, production level, employment level, raw materials inventory and other such services in the manufacturing sector all declined in growth.
The CBN also reported that non-manufacturing sector’s PMI stood at 41.9 points in September, indicating a decline from its 44.7 points in August.
The survey read, “Of the 17 sub-sectors surveyed, three subsectors reported growth in the following order: water supply, sewage and waste management; arts, entertainment and recreation and professional, scientific, and technical services.
“ The remaining 14 subsectors reported decline in the following order: management of companies; repair, maintenance/washing of motor vehicle; agriculture; finance and insurance; electricity, gas, steam and air conditioning supply; accommodation and food services.
“Others are information and communication; health care and social assistance; real estate, rental and leasing; educational services; wholesale trade; transportation and warehousing; utilities and construction.’’