Nigeria’s Manufacturing Index shrinks further in June – CBN

Nigeria’s Manufacturing Purchasing Managers’ Index (PMI), which measures the prevailing direction of economic trends in the manufacturing sector, stood at 41.1 points in June 2020, indicating contraction in the sector for the second time.
Data obtained from the Central Bank of Nigeria (CBN) website on Thursday has revealed even as the data further that the production level of the manufacturing sector fell to 36.6 points in June for the second straight month.
Out of the 14 sub-sectors surveyed, only 5 recorded growth (above 50% threshold) in the following order according to the PMI Survey Report for June 2020: electrical equipment; cement; petroleum and coal products; transportation equipment and paper products.
According to the survey carried out by the CBN statistics department between 8th and 12th June 2020, the 9 sub-sectors that witnessed decline included printing and related support activities; textile, apparel, leather and footwear; primary metal; plastics and rubber products; non-metallic mineral products; fabricated metal products; food, beverage and tobacco products; chemical and pharmaceutical products and furniture and related products.
Three sub-sectors saw increase in their production level, two remained unchanged while the rest 9 experienced decline.
The manufacturing supplier delivery time index stood at 60.9 points in June, reflecting growth in supplier delivery time index for the second time. Even as nine out of the 14 sub-sectors reported improved suppliers’ delivery time, three sub-sectors recorded no change while two witnessed slump in delivery time.
“The employment level index in June 2020 stood at 38.8 points, indicating decline in employment level index for the third month. Of the 14 sub-sectors, two sub-sectors recorded increases in employment, one sub-sector remained unchanged, while the remaining 11 sub-sectors recorded lower employment level in the review month.
“The manufacturing sector inventories index showed contraction for the third time in June 2020. At 41.0 points, the raw materials inventories index is contracting at a slower rate when compared to its level in May 2020.
“Three of the 14 sub-sectors recorded reported growth in inventories, one remained unchanged, while the remaining 10 sub-sectors recorded lower raw material inventories in the review month,” the report said.
The composite PMI for the non-manufacturing sector stood at 35.7 points, implying contraction for the third month in a row.