Despite the gradual resumption of business and economic activities, the Purchasing Managers Index (PMI) for the month of September contracted by 1.6 points to 46.9 points, from the 48.5 points recorded in August. The decline stemmed from the drop in production level, new orders, employment level, and raw materials inventory.
The report also revealed that out of the 14 subsectors surveyed, only four experienced expansion above the 50 percent benchmark.
“The Manufacturing PMI in the month of September stood at 46.9 index points, indicating contraction in the manufacturing sector for the fifth time of the 14 subsectors surveyed, 4 subsectors reported expansion above the 50 percent threshold, supplier delivery time grew faster, while production level, new orders, employment level and raw materials inventories contracted,” the report stated.
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Similarly, the non-manufacturing PMI also recorded a contraction by 2.8 percent to 41.9 point in September from the 44.7 points recorded in the previous month, with business activity, level of new orders, employment level and inventories experiencing a decline as well.
In addition, the report noted that out of the 17 subsectors surveyed, only 3 which are the arts, entertainment and recreation, professional, scientific and technical services and the water supply, sewage and waste management grew above the 50 percent benchmark.
The PMI report released by the Central Bank of Nigeria (CBN) is an indicator of how the sector fares in a month and also the changes in the level of business activities in the current month compared with the preceding month.
