The Central Bank of Nigeria (CBN) on Thursday released its Manufacturing and non-manufacturing Purchasing Managers Index (PMI), which showed that 16 out of 17 non-manufacturing subsectors reported contraction.
Similarly, eight out of 14 manufacturing sub-sectors contracted in August 2020. The purchasing managers’ activities were largely affected by the lockdown of the global economy to curtail the spread of the COVID-19 pandemic.
The August manufacturing PMI was an improvement to 44.9 index points recorded last month but below 50 points threshold.
The Manufacturing PMI in the month of August stood at 48.5 index points, indicating contraction for the fourth consecutive months.
In this month’s PMI report, supplier delivery time grew, while Production level, new orders, employment level and raw materials inventories contracted.
However, 6 subsectors reported expansion above 50% threshold in the review month. nonmetallic mineral products; cement; plastics and rubber products; transportation equipment; chemical and pharmaceutical products and textile, apparel, leather and footwear.
The remaining 8 subsectors reported contraction in the following order: printing and related support activities; electrical equipment; petroleum and coal products; primary metal; furniture and related products; paper products; food, beverage and tobacco products; and fabricated metal products.
The August 2020 PMI survey was conducted by the Statistics Department of the Central Bank during the period August 10-14, 2020. The respondents were purchasing and supply executives of manufacturing and non-manufacturing organizations in all 36 states in Nigeria and the Federal Capital Territory (FCT).
A composite PMI above 50 points indicates that the manufacturing/non-manufacturing economy is generally expanding, 50 points indicates no change and below 50 points indicates that it is generally contracting.
The PMI for the non-manufacturing sector stood at 44.7 points in August 2020, indicating contraction in non-manufacturing activities for the fifth consecutive months.
At 47.4 points, the business activity index declined for the fourth consecutive month, indicating contraction in non-manufacturing business activity in August 2020. Five out of the 17 subsectors reported growth in business activities (above 50% threshold) in the review month; 3 subsectors reported same level, while the remaining 9 subsectors recorded decline in business activity in the review month.
