Nigeria’s manufacturing sector shrank for the sixth straight month in October, the Central Bank of Nigeria (CBN)’s Purchasing Managers Index Survey Report showed on Tuesday.
Manufacturing in Africa’s biggest economy has been slowing since May following the coronavirus pandemic, with severe disruptions to the supply chains.
The Purchasing Manager Index (PMI) measures the economic health and the prevailing direction of the manufacturing and service sectors from the opinions and views of private sector companies polled by the CBN statistics unit.
“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.
The production index in October for the manufacturing sector stood at 50.0 points, implying a halt in contraction, which began in May.
7 sub-sectors witnessed expansion in production level of the 14 surveyed. 1 subsector maintained 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 rest six shrank.
The manufacturing supplier delivery time index stood at 51.8 points, meaning it quickened for the sixth month in a row.