Nigeria’s manufacturing sector contracts in October; 6th time in 2020

The Manufacturing Purchasing Managers’ Index (PMI), in the month of October stood at 49.4 index points, indicating slowing contraction in the manufacturing sector compared with the last five months.

The October 2020 PMI survey was conducted by the Statistics Department of the Central Bank of Nigeria during the period of October 12-16, 2020.

Read the CBN PMI survey below:

The October 2020 PMI survey was conducted by the Statistics Department of the Central Bank of Nigeria during the period October 12-16, 2020.

Source: CBN CBN report

The respondents were purchasing and supply executives of manufacturing and non-manufacturing organizations in all 36 states in Nigeria and the Federal Capital Territory (FCT). 

The bank makes no representation regarding the individual companies, other than the information they have provided. The data contained herein further provides input for policy decisions.

The survey indicated that out of the Of the 14 subsectors surveyed, 6 subsectors reported expansion (above 50% threshold) in the review month in the following order: Electrical equipment, Transportation equipment, Printing & related support activities, Chemical & pharmaceutical products, Textile, apparel, leather & footwear and Cement.

Source: CBN CBN report

 The remaining 8 subsectors reported contractions in the following order: Primary metal, Petroleum & coal products, Paper products, Fabricated metal products, Furniture & related products, Nonmetallic mineral products, Plastics & rubber products and Food, beverage & tobacco products.

The report also indicates that at 50.0 points, the production level index in October 2020 for the manufacturing sector indicating halting in contraction which commenced since May 2020. Of the 14 subsectors surveyed, 7 subsectors recorded expansion in production level, 1 subsector maintained current level, while 6 subsectors recorded declines in production in October 2020.

Source: CBN CBN report

The manufacturing supplier delivery time index stood at 51.8 points in October 2020. This indicates that supplier delivery time is faster for the sixth consecutive month. Six of the 14 subsectors recorded improved suppliers’ delivery time, 5 subsectors reported stationery level, while 3 subsectors recorded slowing delivery time.

The employment level index for October 2020 stood at 46.0 points, indicating contraction in employment level for the seventh consecutive month. Of the 14 subsectors, 3 subsectors recorded growth in employment level in the review month; 2 subsectors recorded stationary level of employment, while the remaining 9 subsectors recorded lower employment levels in the review month.

PMI for the non-manufacturing sector stood at 46.8 points in October 2020, indicating contraction in Nonmanufacturing PMI for the seventh consecutive month.

Sub-sector

Of the 17 sub-sectors surveyed, 3 subsectors reported growth in the following order: Electricity, gas, steam & air conditioning supply; Art, entertainment & recreation and Health care & social assistance.

Eleven subsectors reported declines in the following order: Management of companies; Utilities; Information & communication; Construction; Professional, scientific, & technical services; Repair, Maintenance/Washing of Motor Vehicles…; Wholesale/Retail trade; Educational services; Transportation & warehousing; Accommodation & food services and Real estate rental & leasing.

Source: CBN CBN report

While 3 subsectors Agriculture; finance & insurance and Water supply, sewage & waste management were stationary.

Source: CBN CBN report

Still on employment

The employment level Index for the non-manufacturing sector stood at 44.2 points, indicating contraction in employment level in October 2020.

Source: CBN CBN report

All 17 subsectors reported decline in employment level (below 50% threshold) in the review month.