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Manufacturing PMI shrinks in September 2020 for the fifth time, employment level index down at 44.1 points

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THUR, 24 SEPT, 2020-theGBJournal-The Central Bank of Nigeria (CBN) on Wednesday published the Manufacturing Purchasing Managers’ Index (PMI) Survey Report for the month of September.

The September 2020 PMI survey was conducted by the Statistics Department of the Central CBN during the period September 7-11, 2020. 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 statistics shows that PMI stood at 46.9 index points, indicating contraction in the manufacturing sector for the fifth time, and of the 14 subsectors surveyed, 4 subsectors reported expansion (above 50% threshold) in the review month in the following order electrical equipment; transportation equipment; cement and nonmetallic mineral products.

The remaining subsectors reported contractions in the following order: petroleum & coal products; primary metal; furniture and related products; printing and related support activities; food, beverage and tobacco products; textile, apparel, leather and footwear; chemical and pharmaceutical products; fabricated metal products and plastics & rubber products; while paper product subsector was stable.

The non-manufacturing sector PMI stood at 41.9 points in September 2020, also indicating contraction for the sixth consecutive month.

The production level index for the manufacturing sector also indicated contraction in September 2020 for the fifth consecutive month standing at 47.3 points.

At 43.7 points, the business activity index declined for the fifth consecutive month, indicating contraction in non-manufacturing business activity in September 2020.

At 46.4 points, the new orders index contracted in September 2020 for the fifth consecutive month. Six subsectors reported expansion in new orders, while the remaining 8 recorded contraction in the review month.

The manufacturing supplier delivery time index stood at 53.5 points in September 2020, indicating faster supplier delivery time for the fifth time. Six of the 14 subsectors recorded improved suppliers’ delivery time, 5 subsectors reported same level, while 3 subsectors recorded slower delivery time.

The employment level index for September 2020 stood at 44.1 points, indicating contraction in employment level for the sixth consecutive month. Of the 14 subsectors, 2 subsectors recorded growth in employment, 3 subsectors recorded same level of employment, while the remaining 9 subsectors recorded lower employment level in the review month.

New orders index declined for the sixth time in September 2020. New orders stood at 39.5 points. Two of the 17 subsectors reported growth in new order (above 50% threshold) in the review month, 1 sector reported same level of new order, while the remaining 14 subsectors recorded decline in new orders in the review month

The manufacturing sector inventories index contracted for the sixth consecutive time. At 43.0 points, the index declined in the review month. Four of the 14 subsectors recorded growth in inventories, while the remaining 10 subsectors recorded lower raw material inventories in the review month.

At 43.7 points, the business activity index declined for the fifth consecutive month, indicating contraction in non-manufacturing business activity in September 2020. Three out of the 17 subsectors reported growth in business activities (above 50% threshold) in the review month; while the remaining 14 subsectors recorded decline in business activity in the review month.

The employment level Index for the non-manufacturing sector stood at 41.6 points, indicating contraction in employment level in September 2020. Two subsectors recorded growth, 1 subsector recorded same level of employment, while the remaining 14 subsectors reported decline in employment level (below 50% threshold) in the review month.

At 43.1 points, non-manufacturing inventory index declined for the sixth consecutive month. This indicates reduced inventories in the review period. Three subsectors reported growth in inventory; the arts, entertainment & recreation sector reported same level of inventories, while the remaining 13 subsectors recorded decline in inventories in the review period.

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