Economic Crisis: CBN says manufacturing index down 4th consecutive month this August

In the apex bank’s Index released yesterday, of the 14 subsectors surveyed, only six subsectors reported expansion while eight declined significantly.

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Employment level down 5th  consecutive month

The Manufacturing Purchasing Manager’s Index (PMI) of the Central Bank of Nigeria, CBN, in August 2020 witnessed a contraction for the fourth consecutive month, as it stood at 48.5 index points.

In the apex bank’s Index released yesterday,  of the 14 subsectors surveyed, only six subsectors reported expansion while eight declined significantly.

The six that recorded positive outing in the month include: nonmetallic mineral products; cement; plastics & rubber products; transportation equipment; chemical & pharmaceutical products and textile, apparel, leather & footwear.

The eight that declined include: printing & related support activities; electrical equipment; petroleum & coal products; primary metal; furniture & related products; paper products; food, beverage & tobacco products; and fabricated metal products.

The CBN report stated: “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.”

The CBN report also shows the employment level index for the month stood at 44.6 points, indicating contraction in employment level for the fifth consecutive months.

CBN stated: “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.”

For Non-Manufacturing PMI the report stated: “The PMI for the non-manufacturing sector stood at 44.7 points in August 2020, indicating contraction in non-manufacturing activities for the fifth consecutive months. Of the 17 surveyed sub-sectors, only the utilities subsector reported same level, while the remaining 16 subsectors reported contracted in the following order: repair, maintenance/washing of motor vehicles; real estate rental & leasing; professional, scientific, & technical services; management of companies; electricity, gas, steam & air conditioning supply; educational services; health care & social assistance; finance & insurance; construction; arts, entertainment & recreation; transportation & warehousing; accommodation & food services; water supply, sewage & waste management; wholesale/retail trade; agriculture and Information & communication.”

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