CBN Reveals Decline In Production Sector

The Central Bank of Nigeria, CBN has revealed that the manufacturing Purchasing Managers Index, PMI, in January dropped marginally to 59.2 index points while activities in the sector have expanded for the 34th consecutive months.

The apex bank also stated that the manufacturing PMI January records read 1.6 index points which declines its December 2019 index point of 60.2 while the Non-Manufacturing PMI dropped by 2.5 index points to 59.6 index points in January from 62.1 index points in December.

Notably, a PMI index of 50 points stands for expansion in economic activity, while PMI reading below 50 points indicates a fall in economic activities.

In addition, the CBN revealed that 11 expansions out of the 14 surveyed manufacturing sector and 17 non-manufacturing sectors surveyed also recorded expansion has been recorded

“The Manufacturing PMI in the month of January stood at 59.2 index points, indicating expansion in the manufacturing sector for the thirty-fourth consecutive month. The index grew at a slower rate when compared to the index in December.”

“Of the 14 surveyed sub-sectors, 11 reported growth in the review month in the following order: petroleum and coal products; transportation equipment; Paper products; Furniture and related products; plastics and rubber products; primary metal; food, beverage and tobacco products; chemical and pharmaceutical products; fabricated metal products; textile, apparel, leather and footwear, and cement. The electrical equipment sub-sector remained unchanged while printing and related support activities and non-metallic mineral products recorded declines.”

“The composite PMI for the non-manufacturing sector stood at 59.6 points in January 2020, indicating expansion in non-manufacturing PMI for the thirty-third consecutive month,” CBN said