The Purchasing Managers Index (PMI) for both the manufacturing and non-manufacturing sectors continued to contract according to the latest report for July released yesterday by the Central Bank of Nigeria (CBN).
The Manufacturing PMI in the month of July stood at 44.9 index points, indicating contraction in the manufacturing sector for the third consecutive month as only one of 14 surveyed subsectors, transportation equipment subsector, reported growth above 50 per cent threshold.
While the nonmetallic mineral products sector reported no change, the remaining 12 subsectors reported contraction in the following order printing & related support activities; primary metals; fabricated metal products; paper products; food, beverage & tobacco products; chemical & pharmaceutical products; furniture & related products; electrical equipment; plastics & rubber products; petroleum & coal products; textile, apparel, leather & footwear and cement.
At 44.7 points, the production level index for the manufacturing sector declined in July 2020 for the third consecutive month as one subsector recorded increased production level, four remained unchanged, while nine subsectors recorded declines in production in July 2020.
The new orders index also showed a contraction for the third consecutive month at 43.1 points. It however grew by 6.7 points above the level recorded in June 2020, as two subsectors reported expansion, three remained unchanged while nine subsectors recorded contraction.
The employment level index for July 2020 stood at 40.0 points, indicating decline in employment level for the fourth consecutive month. Of the 14 subsectors, three subsectors remain unchanged, while the remaining 11 subsectors recorded lower employment level in the review month.
Also the raw materials inventories index contracted for the fourth consecutive month in July 2020, at at 43.2 points, the manufacturing sector inventories index. Three of the 14 subsectors recorded growth in inventories, two remained unchanged, while the remaining nine subsectors recorded lower raw material inventories in the review month.
The non-manufacturing sector PMI stood at 43.3 points in July 2020, indicating contraction in Nonmanufacturing sector for the fourth consecutive month. Of the 17 surveyed subsectors, 2 subsectors: arts, entertainment & recreation and transportation & warehousing reported growth above 50 per cent threshold.
The remaining 15 subsectors reported declines in the following order: water supply, sewage & waste; repair, maintenance/washing of motor vehicle; professional, scientific, & technical services; finance & insurance; educational services; public administration; wholesale/retail trade; accommodation & food services; real estate rental & leasing; utilities; agriculture; management of companies; Information & communication; construction; health care & social assistance and electricity, gas, steam & air conditioning supply (Fig. 9 and Table 7).
Business activity index at 46.1 points in July 2020, showed contraction for the third consecutive month. However, five out of the 17 subsectors reported expansion in business activities in July 2020, while the remaining 12 subsectors recorded contraction
The employment level Index for the non-manufacturing sector stood at 41.1 points, indicating decline in employment level in the review month. One out of the 17 subsectors reported growth in employment level, two subsectors remained unchanged while the remaining 14 subsectors recorded declines in employment level in the review month