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Manufacturing Sector Sustains Slow Growth In Six Months, Contracts 49.4 In October

Manufacturing Sector Sustains Slow Growth In Six Months, Contracts 49.4 In October

Nigeria’s manufacturing sector has continued its contraction for the sixth consecutive month in October, the latest Purchasing Managers Index report from the Central Bank has shown.

The manufacturing PMI witnessed a 49.4 points dip, below the 50 percent threshold used to aggregate activities and performances, since it started the contraction in May this year.

According to the PMI report, eight subsectors from the 14 subsectors surveyed, had a slow contraction, while the remaining six recorded expansion above the 50 points.

“Of the 14 subsectors surveyed, 6 subsectors reported expansion (above 50% threshold) in the review month in the following order: Electrical equipment, Transportation equipment, Printing and related support activities, Chemical and pharmaceutical products, Textile, apparel, leather and footwear, and Cement.

“The remaining eight subsectors reported contractions in the following order: Primary metal, Petroleum and coal products, Paper Products, Fabricated metal products, Furniture, and related products, Non-metallic mineral products, Plastics & rubber products and Food, beverage and tobacco products,” the report showed.

Meanwhile, seven out of the subsectors recorded an expansion in production level, one remained at the current level, while six recorded declines in production level.

On the flipside, the report stated that the employment level index stood at 46.0 points, indicating contraction for the seventh consecutive month.

“Of the 14 subsectors, 3 subsectors recorded growth in employment level in the review month; 2 subsectors recorded stationary level of employment, while the remaining 9 subsectors recorded lower employment levels in the review month.”

The report showed that the supplier delivery time index stood at 51.8 points, maintaining a faster delivery time for the sixth consecutive month.

The PMI survey showed that non-manufacturing sector contracted for the seventh consecutive month at 46.8 percent, with 11 subsectors reporting declines, while three subsectors reported growth.

“Of the 17 sub-sectors surveyed, three subsectors reported growth in the following order: Electricity, gas, steam and air conditioning supply; Art, entertainment and recreation and Health care and social assistance.

“11 subsectors reported declines in the following order: Management of companies; Utilities; Information & communication; Construction; Professional, scientific, & technical services; Repair, Maintenance/Washing of Motor Vehicles…; Wholesale/Retail trade; Educational Services; Transportation and Warehousing; Accommodation & food services and Real estate rental and leasing.

It added that non-manufacturing inventory index declined for the seventh consecutive month to 46.3 points with 11 subsectors performing below the 50.0 percent threshold.

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