CBN: Manufacturing sector grows at a slower rate in September

The manufacturing sector Purchasing’ Managing Index (PMI) grew for the eighteenth consecutive month in September, even as it recorded 0.6 index points lower than the preceding month.

In a PMI Survey Report by the Central Bank of Nigeria (CBN) released on Tuesday, the apex bank said the PMI shrank from 56.8 index points in August to 56.2 index points in September.

The PMI is the barometer of the economic health of manufacturing and services sectors.
The report shows that out of 14 sub-sectors captured under the survey, 10 sub-sectors reported growth in the review month.

The sub-sectors comprise of Electrical equipment; Printing & related support activities; Transportation equipment; Nonmetallic mineral products; and Chemical & pharmaceutical products.

Others include Fabricated metal products; Furniture & related products; Textile, apparel, leather & footwear; Food, beverage & tobacco products; and Plastics & rubber products.

Conversely, the Petroleum & coal products; Cement; Paper products; and Primary metal sub-sectors declined in the review month.

According to the CBN, the production level index for the manufacturing sector, which stood at 58.4 points, grew for the nineteenth consecutive month in September from 59.0 points in August.

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“The index indicated a slower growth in the current month, when compared to its level in the preceding month. Ten of the 14 manufacturing sub-sectors recorded increase in production level, 1 remained unchanged while 3 declined,” the report stated.

New orders stood at 55.3 points in the month under review down from 55.8 points in August, supplier delivery time at 56.1 points, employment level at 54.9 points, and raw materials inventories at 55.9 points also grew at a slower rate in the review month.

Also, the composite PMI for the Non-manufacturing sector stood at 56.5 points in the period under review, indicating expansion in the non-manufacturing PMI for the seventeenth consecutive month. The index grew at a slower rate when compared to that in August 2018.

Business activity, new orders, employment, inventory in the non-manufacturing sector all grew at a slower rate, recording 58.1 points, 55.8 points, 55.4 points and 56.8 points in September as against 59.3 points, 56.9 points, 56.7 points and 58.9 points recorded in the preceding month, respectively.

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