Business

Manufacturing Sector Contracts In October

Activities in the manufacturing sector contracted for the sixth consecutive month, as the Purchasing Managers Index (PMI) stood at 49.4 index points in October.

This was revealed on Tuesday in the Central Bank of Nigeria (CBN)’s PMI report for October.
The nation’s economy has been slowing since May due to the COVID-19, with severe disruptions to the supply chains.

“The manufacturing PMI in the month of October stood at 49.4 index points, indicating slowing contraction in the manufacturing sector compared with the last five months.

“Of the 14 subsectors surveyed, six subsectors reported expansion (above 50 per cent 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 & coal products, paper products, fabricated metal products, furniture and related products, non-metallic mineral products, plastics and rubber products and food, beverage and tobacco products,” the report said.

Manufacturing Sector Contracts In October

The production index in October for the manufacturing sector stood at 50.0 points, indicating a pause in contraction, which began in May.

According to the apex back’s report, 7 sub-sectors recorded growth in production level of the 14 surveyed. 1 subsector sustained current level, while 6 reported declines in production.

The new orders index grew at 51.2 points from a contraction last month.

Four subsectors saw expansion in new orders, four remained static, while the remaining six contracted.

“The manufacturing supplier delivery time index stood at 51.8 points in October 2020. This indicates that supplier delivery time is faster for the sixth consecutive month. Six of the 14 sub-sectors recorded improved suppliers’ delivery time, five reported stationery level, while three recorded slowing delivery time.

“The employment level index for October 2020 stood at 46 points, indicating contraction in employment level for the seventh consecutive month. Of the 14 sub-sectors, three sub-sectors recorded growth in employment level in the review month; two sub-sectors recorded stationary level of employment, while the remaining nine sub-sectors recorded lower employment levels in the review month,” it stated.

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