Slow growth in manufacturing sector – CBN

THE Purchasing Manager’s Index (PMI) for the manufacturing sector released by the Central Bank of Nigeria (CBN) on Thursday showed that the index for February grew at a slower rate when compared to the index in January.

The February 2020 PMI survey was conducted by the Statistics Department of the CBN during the period February 10-14, 2020.

The surveyed firms were purchasing and supply executives of manufacturing and non-manufacturing organizations in all 36 states in Nigeria and the Federal Capital Territory (FCT).

The manufacturing and non-manufacturing PMI report on businesses are based on survey responses, indicating the changes in the level of business activities in the current month compared with the preceding month.

The apex bank highlighted in its report that of the 14 surveyed subsectors, 12 reported growth above 50 per cent threshold for February in the following order.

Transportation equipment; petroleum & coal products; Nonmetallic mineral products; Paper products; cement; textile, apparel, leather & footwear; Furniture & related products; food, beverage & tobacco products; plastics & rubber products; Fabricated metal products; chemical & pharmaceutical products; plastic and rubber products and Electrical equipment.

The Primary metal and Printing & related support activities subsectors recorded declines.

According to the released report, the production index indicated slower growth in production level for February, when compared to its level in January 2020.

Ten of the 14 manufacturing subsectors recorded an increased production level, 3 remained unchanged while 1 recorded a decline.

Also, the new orders index grew at a slower rate, when compared to its level in January 2020.

Eleven subsectors reported growth, while the remaining 3 recorded declines in February.

    The report also showed that 10 of the 14 subsectors recorded improved suppliers’ delivery time, while 4 subsectors reported no change in delivery time in February 2020.

    Out of the 14 subsectors, 9 reported increased employment level, 3 subsectors remain unchanged, while the electrical equipment and printing & related support services subsector recorded lower employment level in February.

    The index for raw material inventories grew at a slower rate when compared to its level in January 2020.

    Eight of the 14 subsectors recorded growth, 5 subsectors reported unchanged inventories, while the cement subsector reported lower raw material inventories in February.

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