Nigerian manufacturing sector shrinks for the third straight month in July –CBN

Nigeria’s Manufacturing Purchasing Managers’ Index (PMI), which measures the direction of trends and developments in the manufacturing industry, tightened for the third successive month at 44.9 index points in July, as Africa’s biggest economy grapples with a disruption to its supply chain by the coronavirus outbreak, the Central Bank of Nigeria (CBN) said Wednesday.

‘Of the 14 surveyed subsectors, transportation equipment subsector reported growth (above 50% threshold) in the review month while non-metallic mineral products sector reported no change.

‘However, 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,’ the CBN said in its Purchasing Managers’ Index Survey Report for July.

The study, which aggregated views from purchasing and supply executives of manufacturing and non-manufacturing businesses in the nation’s 36 states, observed that the PMI for the non-manufacturing sector contracted for the fourth month in a row with only transportation & warehousing, and arts, entertainment & recreating posting growth of the 17 subsectors polled.

Read also: Manufacturing sector contracts in May, first time in three years –CBN

Water supply, sewage & waste; repair, maintenance/washing of motor vehicle; professional, scientific, & technical services; finance & insurance; educational services; public administration; wholesale/retail trade and accommodation & food services were the worst affected of the 15 segments that reported negative growth under the non-manufacturing sector category.

The rest are real estate rental & leasing; utilities; agriculture; management of companies; Information & communication; construction; health care & social assistance and electricity, gas, steam & air conditioning supply.

The World Bank said in June South, Africa, Nigeria and Angola would bear the main weight of sub-Saharan Africa’s 5.1% economic decline in 2020 on the grounds of their import-obsessed culture.

‘This will inevitably affect Africa’s participation in trade and value chains as well as reduce foreign financing flows.’

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