The Manufacturing Purchasing Managers Index (PMI) in the month of August stood at 48.5 index points, indicating contraction in the manufacturing sector for the fourth consecutive month, according to the latest PMI data from the Central Bank of Nigeria (CBN).
However, of the 14 subsectors surveyed, 6 subsectors reported expansion (above 50% threshold) in the review month in the following order: nonmetallic mineral products; cement; plastics & rubber products; transportation equipment; chemical & pharmaceutical products and textile, apparel, leather & footwear.
The remaining 8 subsectors reported contraction in PMI in the following order: printing & related support activities; electrical equipment; petroleum & coal products; primary metal; furniture & related products; paper products; food, beverage & tobacco products; and fabricated metal products.
Employment Level
The employment level index for August 2020 stood at 44.6 points, indicating contraction in employment level for the fifth consecutive months.
Of the 14 subsectors, 2 subsectors recorded expansion in employment level in the review month; 3 subsectors recorded same level of employment, while the remaining 9 subsectors recorded lower employment level in the review month.
Production Level
At 49.2 points, the production level index for the manufacturing sector showed contraction in August 2020 and for the fourth consecutive months.
Of the 14 subsectors surveyed, 5 subsectors recorded expansion in production level, 3 subsectors reported same level of production, while 6 subsectors recorded contraction in production in August 2020.
Raw material Inventories
The manufacturing sector inventories index contracted for the fifth time in August 2020. At 46.1 points, the index declined in the review month.
Four of the 14 subsectors recorded growth in inventories, the petroleum and coal subsector reported same level of inventories, while the remaining 9 subsectors recorded lower raw material inventories in the review month.