Manufacturing sector shrinks in December – CBN
Nigeria’s manufacturing sector contracted in December after scraping a weak recovery in November, the Central Bank of Nigeria (CBN) revealedin its Purchasing Managers Index Survey Report for December, 2020 issued on Thursday.
“The Manufacturing PMI in the month of December stood at 49.6 index points, indicating a contraction from the expansionary level recorded in the month of November 2020,” the CBN report said.
The manufacturing PMI gauges the economic health for the manufacturing sector by exploring trends in the industry from responses and views provided by purchasing managers.
A score above 50 indicates an expansion while that below 50 points to a contraction. A PMI reading of 50 means no change.
In November, the manufacturing PMI rose to 50.2 index points, posting a growth after seven months of consecutive contractions.
“Of the 14 surveyed subsectors, four subsectors reported expansion (above 50 per cent threshold) in the review month in the following order: transportation equipment, non-metallic mineral products, paper products and food, beverage and tobacco products.
“Textile, apparel, leather and footwear subsector remained stationary,” the CBN said.
The remaining 9 subsectors recorded decline. They include Primary metal, petroleum and coal products; cement, electrical equipment, fabricated metal products, printing and related support activities.
Others are plastics & rubber products; chemical & pharmaceutical products and furniture and related products.
Meanwhile, the December 2020 production level index for the manufacturing sector stood at 51.6 points, suggesting expansion for the second successive month, according to the CBN.
Six subsectors saw increase in production of the fourteen surveyed while four subsectors recorded declines. Four reported no progress.
The CBN said the manufacturing supplier delivery time index was 51.2 points in the month under review, showing that supplier delivery time was faster for the eight-straight months.
