Again, Nigeria’s Manufacturing Index Declines

Obinna Chima

Nigeria’s Manufacturing Purchasing Managers’ Index (PMI) rose to 45.8 index points in May 2016, compared to 43.7 in the preceding month.

This according to the PMI report for May 2016 posted on the Central Bank of Nigeria’s website wednesday, implied that the manufacturing sector declined at a slower rate during the review period.

Of the 16 manufacturing sub-sectors, 11 recorded decline in the review month in the following order: primary metal; paper products; petroleum & coal products; furniture & related products; fabricated metal products; printing & related support activities; nonmetallic mineral products; electrical equipment; textile, apparel, leather & footwear; food, beverage & tobacco products and chemical & pharmaceutical products. The remaining five sub-sectors however recorded expansion in the following order: computer & electronic products; appliances and components; cement; plastics & rubber products and transportation equipment.

Also, at 49.3 index points, the production level index for manufacturing sector declined for the fifth consecutive month, but at a slower rate than that recorded in April 2016. Of the 16 manufacturing sub-sectors, 10 recorded decline in production level during the review month in the following order: primary metal; petroleum & coal products; electrical equipment; printing & related support activities; paper products; fabricated metal products; nonmetallic mineral products; furniture & related products; textile, apparel, leather & footwear and food, beverage & tobacco products.

The transportation equipment sub-sector recorded no change. The remaining five recorded growth in production level during the review month in the following order: cement; plastics & rubber products; appliances & components; chemical & pharmaceutical products and computer & electronic products.

In addition, it showed that the new orders index rose to 43.2 index points in May 2016, but still indicating a decline for the fifth consecutive month. The 12 sub-sectors that recorded declines in new orders were: primary metal; petroleum & coal products; transportation equipment; fabricated metal products; furniture & related products; paper products; printing & related support activities; nonmetallic mineral products; textile, apparel, leather & footwear; chemical & pharmaceutical products; electrical equipment and food, beverage & tobacco products. The appliances & components sub-sector recorded no change.