After several months of continuous decline, Nigeria’s manufacturing sector might be showing some meager signs of improvements.
The Central Bank has disclosed that October’s manufacturing purchasing managers‘ index rose to 44.1 index points compared 42.5 index points in September. This is a positive sign for an economy that has seen the worst decline in its narrow manufacturing sector.
However, the CBN said ’14 of the 16 sub-sectors surveyed recorded declines in the review month in the following order: electrical equipment; primary metal; fabricated metal products; petroleum & coal products; transportation equipment; computer & electronic products; printing & related support activities; nonmetallic mineral products; plastics & rubber products; furniture & related products; paper products; textile, apparel, leather & footwear; cement and chemical & pharmaceutical products’.
The remaining two sub sectors grew in the order: appliances & components and food, beverage & tobacco products.
The rate of growth is still low as new orders index declined for the tenth consecutive month.
At 40.3 points, the index declined at a slower rate when compared to the 38.7 index points in September 2016. The fourteen subsectors that recorded declines in new orders were: computer & electronic products; transportation equipment; primary metal; fabricated metal products; electrical equipment; nonmetallic mineral products; printing & related support activities; plastics & rubber products; furniture & related products; paper products; petroleum & coal products; textile, apparel, leather & footwear; chemical & pharmaceutical products and cement.
The remaining two sub-sectors grew in the order: appliances & components and food, beverage & tobacco products.
The Manufacturing and Non-Manufacturing PMI Report on businesses is based on data compiled from purchasing and supply executives. Survey responses indicate whether there is change or no change in the level of business activities in the current month compared with the previous month. For each of the indicators measured, this report shows the diffusion index of the responses