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Nigerian manufacturing sector records growth for first time in 7 months –CBN report
Nigeria’s Manufacturing Purchasing Manager Index (PMI), which gauges the general direction of economic trends, conditions and developments in the manufacturing sector through purchasing managers’ eyes, rose to 50.2 index points in November, the Central Bank of Nigeria (CBN) said Wednesday in its Purchasing Managers’ Index (PMI) Survey Report.
It was the first time since April the Manufacturing PMI would see positive growth, with the new score going 0.8 points higher than that of October, which stood at 49.4 index points.
A score above 50 indicates a growth while that below 50 implies a contraction.
“Of the 14 subsectors surveyed, 8 subsectors reported expansion (above 50% threshold) in the review month in the following order: Transportation equipment, Non-metallic mineral products, Furniture & related products, Cement, Textile, apparel, leather & footwear, Plastics & rubber products, Food, beverage & tobacco products and Printing & related support activities,” the CBN document said.
“The remaining 6 subsectors reported contractions in the following order: Electrical equipment, Petroleum & coal products, Chemical & pharmaceutical products, Primary metal, Paper products and Fabricated metal products.”
Read also: Nigeria’s manufacturing sector contracts for sixth consecutive month
Africa’s biggest economy is in the throes of a revenue slump, sparked off by an oil crash in April and now confronts headwinds from the novel coronavirus that hurtled business activities during lockdowns introduced to curb the pandemic spread.
It shrank by 6.10% in the second quarter and a further contraction in the Gross Domestic Product (GDP) in the third quarter will throw the economy to its recession in four years.
The Non-Manufacturing PMI for November stood at 47.6 points, pointing to weaker activities in the non-manufacturing sector of the economy.
Here, only 3 posted growth of the 17 parameter subsectors. They were transportation & warehousing, healthcare & social assistance and Agriculture.
The National Bureau of Statistics is due to issue Nigeria’s third quarter GDP report any time from now.
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