04 January 2017, Abuja — The Central Bank of Nigeria, CBN, yesterday, released its Purchasing Managers Index (PMI) report for January, which indicated a decline in economic activities during the month. The report showed that out of the 34 sub-sectors surveyed during the month, 21 sub-sectors recorded decline in activity.
Ten sub-sectors declined in the manufacturing sector while 11 sub-sectors declined in the non-manufacturing sector. The report also indicated a decline in employment levels in both the manufacturing and non-manufacturing sectors. In the manufacturing sector, the employment level index at 45.3 points in January declined for the 23rd consecutive month, while the employment level index for the non-manufacturing sector, at 45.6 points declined for the thirteenth consecutive month.
Decline in the manufacturing sector
The report stated: “The Manufacturing PMI stood at 48.2 index points in January 2017, indicating a decline in the manufacturing sector during the review period. The index averaged 45.2 in the last twelve months, and had grown in December 2016 after recording a decline for eleven consecutive months.” Ten of the sixteen sub-sectors surveyed recorded decline in the review month in the following order: primary metal; transportation equipment; paper products; electrical equipment; fabricated metal products; printing and related support activities; cement; furniture and related products; plastics and rubber products; and chemical and pharmaceutical products.
The remaining six sub-sectors are expected to expand in the order: petroleum and coal products; appliances and components; nonmetallic mineral products; food, beverage and tobacco products; textile, apparel, leather and footwear; and computer and electronic products. The production level index for manufacturing sector grew for the second consecutive month. The index stood at 51.3 points, indicating a slower growth when compared to the 57.6 points in the month of December 2016.
“The composite PMI for the non-manufacturing sector declined for the thirteenth consecutive month. The index stood at 49.4 points in January 2017, indicating a slowing decline when compared to that in December 2016. The composite PMI averaged 44.3 points in the last twelve months period. Of the eighteen non-manufacturing sub-sectors, eleven recorded declines in the following order: management of companies; construction; finance and insurance; public administration; water supply, sewage and waste management; repair, maintenance/washing of motor vehicles; professional, scientific and technical services; accommodation and food services; health care and social assistance; real estate, rental and leasing; and wholesale/retail trade.