The Manufacturing Purchasing Managers Index (PMI) in August stood at 48.5 index points, indicating contracting in the manufacturing sector for the fourth consecutive months.
The contraction is according to the August 2020 PMI survey conducted by the Statistics Department of the Central Bank of Nigeria during the period August 10 – 12, 2020, and contained in the PMI survey report published by the Apex bank on Thursday 27th August 2020.
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Out of the 14 subsectors of the manufacturing sector surveyed, 6 subsectors reported expansion (above 50% threshold) in the review month.
These sectors are the following in order:
- Nonmetallic mineral products (76.9 index points)
- Cement (66.7 index points)
- Plastics & rubber products (56.3 index points)
- Transportation equipment (53.8 index points)
- Chemical & Pharmaceutical products (52.2 index points)
- Textile, apparel, leather & footwear (51.6 index points)
The remaining 8 subsectors reported contraction in the following order:
- Printing & related support activities (32.8 index points)
- Electrical equipment (33.3 index points)
- Petroleum & coal products (40.0 index points)
- Primary metal (40.8 index points)
- Furniture & related products (43.3 index points)
- Paper products (44.4 index points)
- Food, beverage & tobacco products (47.9 index points)
- Fabricated metal products (48.0 index points)
At 49.2 points, the production level index for the manufacturing sector showed a contraction in August and also for the fourth consecutive months.
The new orders index also showed a slow contraction with 49.2 points, while the supplier delivery time index stood at 53.0 points indicating faster supplier delivery time.
Employment level index for August stood at 44.6 points, indicating contraction in employment level for the fifth consecutive months.
The manufacturing sector inventories index also contracted, standing at 46.1 points.
The PMI for the non-manufacturing sector stood at 44.7 points in August 2020, indicating a contraction in non-manufacturing activities for the fifth consecutive months.
Of the 17 surveyed sub-sectors, only the utilities subsector reported the same level, while the remaining 16 subsectors reported contraction.
The 16 subsectors contracted in the following order:
- Repair, maintenance/washing of motor vehicles (38.1 index points)
- Real estate rental & leasing (39.1 index points)
- Professional, scientific & technical services (39.8 index points)
- Management of companies (39.9 index points)
- Electricity, gas, steam & air conditioning supply (42.3 index points)
- Educational services (43.6 index points)
- Health care & social assistance (44.0 index points)
- Finance & insurance (44.6 index points)
- Construction (45.0 index points)
- Arts, entertainment & recreation (45.7 index points)
- Transportation & warehousing (45.4 index points)
- Accommodation & food services
- Water supply, sewage & waste management (46.1 index points)
- Wholesale/retail trade (47.2 index points)
- Agriculture (48.7 index points)
- Information & communication (49.1 index points)
The Business activity declined for the fourth consecutive months, with the business activity index standing at 47.4 points.
There was a contraction in the new orders index as well, standing at 44.0 points.
The employment level index for the non-manufacturing sector stood at 44.3 points, indicating a decline in employment level in August 2020.
The non-manufacturing index declined for the fifth consecutive month, standing at 43.1 points.
For the full report, click here.
Written by;
Nnamdi M.
