Manufacturing Sector’s Productivity Contracts In July, Says CBN
The Nigerian manufacturing sector for the third consecutive quarter contracted as a result of the effect of Covid-19 pandemic.
The Central Bank of Nigeria said the sector contracted by 44.9 index points in July.
The country’s apex bank’s recent July production managers Index report noted that the contraction was up compared to the 41.1 and 42.4 index points recorded in June and May 2020 respectively.
The CBN PMI is an indicator of business activity in both the manufacturing and services sectors.
Points above 50 indicates that the country’s manufacturing and non- manufacturing sectors of the economy are expanding, while below 50 points means contraction.
The apex bank said out of 14 surveyed subsectors, transportation equipment subsector reported growth (above 50 per cent threshold) in the review month while non-metallic mineral products sector reported no change.
According to the report, the remaining 12 subsectors reported contraction in July.
The sub-sectors are printing and related support activities; primary metals; fabricated metal products; paper products.
Others include food, beverage and tobacco products; chemical and pharmaceutical products; furniture and related products; electrical equipment; plastics and rubber products; petroleum and coal products; textile, apparel, leather and footwear and cement.
The apex bank further said that production level as of July stood at 44.7 points.
CBN noted that it is the third consecutive decline for the production level index of the manufacturing sector, between May to July.
In Production Level Index only one sub-sector recorded increased production level, four remained
unchanged, while nine subsectors recorded declines in production in July 2020.
Employment level in the manufacturing sector also contracted to 40 points, indicating decline in employment level for the fourth consecutive month.
The report revealed that of the 14 sub-sectors, three sub-sectors remain unchanged, while the remaining 11 sub-sectors recorded lower employment level in July.
The non-manufacturing sector purchasing Managers Index stood at 43.3 points in July 2020.
The result indicates contraction in Non-manufacturing sector for the fourth consecutive month, between April to July this year.