Manufacturing sector PMI contracts for 6th consecutive month

The Manufacturing Purchasing Managers’ Index (PMI), for the month of October, witnessed a contraction for the sixth consecutive month, as it stood at 49.4 index points.

This was disclosed by the Central Bank of Nigeria (CBN), in its October PMI report released on Tuesday.

According to the information contained in the report, despite the fact that the Manufacturing Purchasing Managers’ Index (PMI) for the month of October contracted, the Manufacturing PMI index recorded a month-on-month increase owing to improved new orders, faster manufacturing supplier delivery time, and slight changes in production and employment levels.

The report stated that, out of the 14 subsectors surveyed, 6 subsectors, including Electrical equipment, Transportation equipment, Printing & related support activities, Chemical & pharmaceutical products, Textile, apparel, leather & footwear and Cement reported expansion (above 50% threshold) in the review month in the following order:

While the remaining 8 subsectors,  Primary metal, Petroleum & coal products, Paper products, fabricated metal products, Furniture & related products, nonmetallic mineral products

Plastics & rubber products, Food, beverage & tobacco products, reported contraction (below 50% threshold) in the review month in the following order:

PMI for the non-manufacturing sector stood at 46.8 points in October 2020, indicating contraction in Non-manufacturing PMI for the seventh consecutive month. Of the 17 sub-sectors surveyed, 3 sub sectors reported growth, while eleven subsectors declined.