ECONOMIC GROWTH RATE SOFTENS — CBN
The Central Bank of Nigeria’s (CBN’s) Purchasing Managers Index, PMI, for the manufacturing sector stood at 56.2 in September 2018, indicating further fluctuation against 57.1 recorded in the previous month, August . Similarly, the non-manufacturing sector PMI, stood at 56.5, against 58.0 recorded in the previous month, also pointing to a tottering economy.
The PMI measures level of economic activities across manufacturing and non-manufacturing sectors, where the various leading companies in the sectors and sub-sectors turn in their activity levels in response to CBN’s questionnaire month-on-month. The Manufacturing Sector PMI buckled in May after the 14th consecutive month rise, and subsequently fluctuated month-on-month till September.
The non-manufacturing sector PMI had buckled in February this year after the 11th month consecutive growth in January. Though the sector index began to recover in March, it has not been able to reach the January peak up till the latest decline.
It actually buckled again in June. In its report released yesterday, the Apex Bank indicated that the manufacturing and non-manufacturing, PMI grew at a slower rate in September, compared to that of August 2018. However, of 31 subsectors surveyed, 25 subsectors, recorded growth during the period under review. The report stated: “The Manufacturing PMI in the month of September, stood at 56.2 index points, indicating expansion in the manufacturing sector for the eighteenth consecutive month.
The index however grew at a slower rate when compared to the index in the previous month.” Of the 14 subsectors in the manufacturing sector surveyed, 10 reported growth in the review month in the following order: Electrical equipment; Printing & related support activities; Transportation equipment; Non-metallic mineral products; Chemical & pharmaceutical products; Fabricated metal products; Furniture & related products; Textile, apparel, leather & footwear; Food, beverage & tobacco products; and Plastics & rubber products.
The Petroleum & coal products; Cement; Paper products; and Primary metal subsectors declined in the review month.” The CBN’s report further stated: “The composite PMI for the non-manufacturing sector stood at 56.5 points in September 2018, indicating expansion in the Non-manufacturing PMI for the seventeenth consecutive month. The index grew at a slower rate when compared to that in August 2018.”
Fifteen of the 17 subsectors in the non-manufacturing sector recorded growth in the following order: Educational services; Management of companies; Information & communication; Agriculture; Finance & insurance; Water supply, sewage & waste management; Wholesale/Retail trade; Real estate rental & leasing; Utilities; Accommodation & food services; Transportation & warehousing; Electricity, gas, steam & air conditioning supply; Professional, scientific, & technical services; Health care & social assistance; and Repair, Maintenance/Washing of Motor Vehicles. The Arts, Entertainment & Recreation subsector remained unchanged, while construction subsector recorded contraction in the review period.