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Manufacturing Index Records Slow Growth in March - THISDAY

MARCH 25, 2020

Nume Ekeghe

The Central Bank of Nigeria’s (CBN) Manufacturing Purchasing Managers Index (PMI) stood at 51.1 index points in March, indicating expansion in the manufacturing sector for the 36th consecutive month.

However, the index grew at a slower rate when compared to February.

The Central Bank of Nigeria (CBN) disclosed this in its PMI report for February, 2020, posted on its website yesterday.

According to the report, of the 14 surveyed sub-sectors, seven recorded growth (above 50% threshold) in the review month in the following order: transportation equipment; petroleum & coal products; furniture & related products; food, beverage & tobacco products; cement; fabricated metal products and plastics & rubber products. However, the electrical equipment; primary metal; nonmetallic mineral products; paper products; textile, apparel, leather and footwear; printing & related support activities and chemical & pharmaceutical products sub-sectors all recorded declined in the review month.

Also, the report showed that at 54.4 points, the production level index for the manufacturing sector grew for the 36th consecutive month in March.

The index however indicated slower growth in the current month, when compared to its level in February 2020.

In all, 10 of the 14 manufacturing sub-sectors recorded increased production level, remained unchanged while one recorded a decline.

“At 59.1 points, the new orders index grew for the thirty-fifth consecutive month, indicating increases in new orders in February 2020.

Furthermore, the report stated: “At 54.4 points, the production level index for the manufacturing sector grew for the 37th consecutive month in March 2020.

“The index however indicated slower growth in the current month, when compared to its level in February 2020. Seven of the 14 manufacturing subsectors recorded increased production level, while seven sub-sectors recorded decline in production.”

It added: “At 52.3 points, the new orders index grew for the 36th consecutive month, indicating increases in new orders in March 2020. The index grew at a slower rate, when compared to its level in February 2020.

“Five sub-sectors reported growth, two remained unchanged while seven recorded declines in the review month.”

The composite PMI for the non- manufacturing sector also stood at 49.2 points

in March 2020, indicating contraction in Non-manufacturing PMI for the first time

after 34 consecutive months of expansion. The index declined slightly

below the turning point of 50 points in the review month.

Of the 17 sub-sectors surveyed, seven -sub-sectors recorded growth (above the 50% threshold) in the following order: management of companies; arts, entertainment & recreation; repair, maintenance/washing of motor vehicles; real estate, rental & leasing; information & communication; water supply, sewage and waste management; health care & social assistance.

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