Manufacturing index slides to 45.4%, says report

Economic activities from manufacturing to non-manufacturing sustained a negative record in February, with productivity, raw material inventory, new orders and employment declining at “faster rate.”

The monthly economic report of the Central Bank of Nigeria (CBN), known as Purchasing Managers’ Index (PMI), also showed that out of the 18 non-manufacturing sub-sectors, 15 reported declines in the month of February.

Leading the declining order is the management of companies are utilities; wholesale trade; real estate, rental and leasing; construction; accommodation and food services; information and communication; health care and social assistance, among others, while public administration led to other sub-sector in growth.

The manufacturing index declined to 45.5 per cent in February 2016, from 47.2 per cent in the preceding month, with 13 manufacturing sub-sectors reporting decline, while only three recorded growth.

The ailing sub-sectors include transportation equipment; appliances and components; textile, apparel, leather and footwear; paper products; furniture and related products; fabricated metal products; non-metallic mineral products; petroleum and coal
products; printing and related support activities; primary metal; chemical and pharmaceutical products; computer and electronic
products and electrical equipment.

Production level at 45 per cent, the production level index for manufacturing sector declined for the second consecutive month, and at a faster rate.

Of the 16 manufacturing sub-sectors, 11 reported decline in production during the period under review, with the computer and electronic products sub-sector reporting no change, while four others, recorded growth in production.

The country also lost numbers in the New Orders Index at 43 per cent in February 2016, from 46.2 per cent in the previous month, making it the second consecutive monthly fall and at a faster rate, with 10 sub-sectors.

Meanwhile, the employment index during the period of February stood at 45 per cent, indicating declines in employment for the 12th consecutive month.

The employment index declined at a faster rate when compared with the level in January 2016, as 12 of the 16 sub-sectors recorded decline.

The sub-sectors that lost manpower include transportation equipment; electrical equipment; plastics and rubber products; primary metal; fabricated metal products; printing and related support activities; furniture and related products; and textile, apparel, leather and footwear.

Others are non-metallic mineral products; petroleum and coal products; chemical and pharmaceutical products; and paper products.

The raw materials inventory index also declined in the period to 44.7 per cent from 45.8 per cent in the previous month and for the second consecutive months, which may not be far from the consequences of foreign exchange crisis in the country.

Twelve of the 16 sub-sectors reported lower raw materials inventories, while one had no change and three others recorded increase.