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Manufacturing sector growth remains steady in 34 months ─ CBN
THE growth in the Nigerian manufacturing sector has remained steady in the last 34 months, a study by the Central Bank of Nigeria (CBN) has revealed.
The CBN in a report titled Purchasing Managers Index (PMI) for January 2020 said the PMI in the month of January stood at 59.2 index points that indicated expansion in the manufacturing sector for the 34th consecutive month.
It, however, noted that the index grew at a slower rate when compared to the index in December 2019.
The Manufacturing and Non-Manufacturing PMI Report on businesses were based on survey responses, indicating the changes in the level of business activities in the current month compared with the preceding month.
The report is a product of a survey of 14 subsectors in which 11 reported growth in the month under review. The subsectors included petroleum and coal products; transportation equipment; Paper products; Furniture and related products; plastics and rubber products; primary metal; food, beverage and tobacco products; chemical and pharmaceutical products; fabricated metal products; textile, apparel, leather and footwear and cement.
The report also revealed that electrical equipment subsector remained unchanged while printing and related support activities and Non-metallic mineral products recorded declines.
According to the report, production level in the manufacturing sector experienced growth.
“At 59.6 points, the production level index for the manufacturing sector show growth for the thirty-fifth consecutive month in January 2020. However, the index indicated a slower growth in the current month, when compared to its level in December 2019,” CBN said.
It noted that nine of the 14 manufacturing subsectors recorded increased production level, three remained unchanged while two recorded decline.
Manufacturing PMI reports production level, level of new orders, suppliers’ delivery time, employment level, and raw material inventory/work in progress grew at a slower rate in January 2020.
However, at 60.4 points, the non-manufacturing inventory index grew for the thirty-third consecutive month, indicating growth in inventories in the review period.
From the surveyed subsectors, all 17 subsectors recorded slower growth in inventories in January 2020 except health care and social assistance, information, and communication, which recorded faster growth in inventories.