Manufacturing sector contracts for sixth consecutive time, says CBN

By Philip Clement

For the sixth consecutive time, the country’s manufacturing sector has contracted in October, the Central Bank of Nigeria has disclosed.

The contraction may not be unconnected to the negative impact of the Covid-19 pandemic on the economy. CBN disclosed this in its October Purchasing Managers Index (PMI) report.

In October, the sector witnessed a slow contraction at 49.4 index points, a weak increase from the 46.9 index points recorded in September.

CBN revealed that out of the 14 sub-sectors, 6 sub-sectors reported expansion above the 50 points threshold.

The apex bank said the sub-sectors that rose above the threshold were electrical equipment, transportation equipment, printing and related support activities, chemical and pharmaceutical products, textile, apparel, leather and footwear and cement.

But the other eight sub-sectors plunged in the following order: primary metal, petroleum and coal products, paper products, fabricated metal products, furniture and related products, Non-metallic mineral products, plastics and rubber products and food, beverage and tobacco products.

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The production level index in October for the manufacturing sector rose above 50 points representing a halt in the six months long contraction since May 2020.

Also the non-manufacturing sector PMI stood at 46.8 points in the review month, representing a plunge for the seventh consecutive month.

Based on the report, out of 17 subsectors, three sub-sectors reported growth, the apex bank said the three sub-sectors that grew were the electricity, gas, steam and air conditioning supply; art, entertainment and recreation and health care and social assistance.