By Audrey Lotechukwu
WED, 28 OCT, 2020-theGBJournal-The Manufacturing PMI in the month of October stood at 49.4 index points, reflecting substantial improvement in manufacturing activity when compared to the past five months- but remains in contraction zone.
The Central Bank of Nigeria’s Purchasing Managers’ Index (PMI) Survey Report published Tuesday, underscored the progress since COVID-19 pandemic slowed the economy down. The survey report shows that of the 14 subsectors surveyed, 6 subsectors reported expansion (above 50% threshold) in the review month.
Production Level index also showed signs of recovery. At 50.0 points, the production level index indicates halting in contraction which commenced since May 2020.
New orders index also expanded at 51.2 points while the manufacturing supplier delivery time index stood at 51.8 points in October 2020.
However, 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.
Inventories contracted for the seventh time in October 2020. Raw material Inventories stood at 46.2 index points.
Meanwhile, PMI for the non-manufacturing sector stood at 46.8 points in October 2020, indicating contraction in Non-manufacturing PMI for the seventh consecutive month. Of the 17 sub-sectors surveyed, three subsectors reported growth in the following order: Electricity, gas, steam and air conditioning supply; Art, entertainment and recreation and Health care & social assistance.
At 48.7 points, the business activity index declined for the sixth consecutive month, indicating contraction in non-manufacturing business activity in October 2020.
At 47.8 points, new orders index declined for the seventh time in October 2020. Six of the 17 subsectors reported growth in new order (above 50% threshold) in the review month, 1 sector reported stationary level, while the remaining 10 subsectors recorded decline in new orders in the review month.
The employment level Index for the non-manufacturing sector stood at 44.2 points, indicating contraction in employment level in October 2020. All 17 subsectors reported decline in employment level (below 50% threshold) in the review month.
At 46.3 points, non-manufacturing inventory index declined for the seventh consecutive month. Four subsectors reported growth in inventory, 2 subsectors recorded stationary inventories while the remaining 11 subsectors recorded decline in inventories in the review period.