Connect with us


Manufacturing sector shrinks in December – CBN report



Nigeria's manufacturing sector contracts for sixth consecutive month

Nigeria’s manufacturing sector contracted in the month of December after scraping a weak recovery in the month before, the Central Bank of Nigeria (CBN) said in its Purchasing Managers Index Survey Report for December issued on Thursday.

“The Manufacturing PMI in the month of December stood at 49.6 index points, indicating a contraction from the expansionary level recorded in the month of November 2020,” the CBN report said.

The manufacturing PMI gauges the economic health for the manufacturing sector by exploring trends in the industry from responses and views provided by purchasing managers.

A score above 50 indicates an expansion while that below 50 points to a contraction. A PMI reading of 50 means no change.

In November, the manufacturing PMI rose to 50.2 index points, posting a growth after seven months of consecutive contractions.

Read also: BUSINESS ROUNDUP: Manufacturing sector dwindles for 5th consecutive month; CBN scales down lending rate to 11.5%; See other stories that made our pick

“Of the 14 surveyed subsectors, four subsectors reported expansion (above 50 per cent threshold) in the review month in the following order: transportation equipment, non-metallic mineral products, paper products and food, beverage and tobacco products.

“Textile, apparel, leather and footwear subsector remained stationary,” the CBN said.

The remaining 9 subsectors recorded decline. They include Primary metal, petroleum and coal products; cement, electrical equipment, fabricated metal products, printing and related support activities.

Others are plastics & rubber products; chemical & pharmaceutical products and furniture and related products.

Meanwhile, the December 2020 production level index for the manufacturing sector stood at 51.6 points, suggesting expansion for the second successive month, according to the CBN.

Six subsectors saw increase in production of the fourteen surveyed while four subsectors recorded declines. Four reported no progress.

The CBN said the manufacturing supplier delivery time index was 51.2 points in the month under review, showing that supplier delivery time was faster for the eight straight month.

Join the conversation


Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now