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Economic activities record mixed fortunes in Nov


Minister for Finance, Kemi Adeosun

Minister for Finance, Kemi Adeosun

Activities in the economic circle, from production and supply to employment generation, showed divergent indications in the month of November 2015, according to the Purchasing Managers Index (PMI) of the Central Bank of Nigeria (CBN).

The PMI, a diffusion of five indices- production level, new orders, supplier delivery time, employment level and raw materials inventory, which shows the prevailing direction of change and the scope of change in business activities.

Specifically, while production level grew at a faster rate, new orders were seen rebounding as well, with raw material inventories increasing at a slower rate, as supplier delivery time failed and employment level decreased at a faster rate.

The employment level index in November, at 45.6 per cent, fell at faster rate, making the ninth consecutive month fall, as the construction; professional, scientific and technical services; arts, entertainment and recreation; and management of companies lead the decline.

Others are water supply, sewage and waste management; finance and insurance; information and communication; accommodation and food services; agriculture and retail trade.

The index for manufacturing expanded at 51.2 points in the month of November from the contractionary level of 49.2 points in the preceding month.

Of the 16 manufacturing sub- sectors, nine sub-sectors reported expansion in the review month, led by cement; primary metal; food, beverage and tobacco products; appliances and components; textile, apparel, leather and footwear; furniture and related products, among others.

However, the remaining seven sub-sectors reported contraction, led by nonmetallic mineral products; printing and related support activities; electrical equipment; plastics and rubber products; chemical and pharmaceutical products; computer and electronic products and paper products.

At the production segment, there was a 55.4 per cent record, showing an increase in the month under review, as well as at faster pace, compared with the level in the preceding month.

Four out of 16 reported contractions in production during the review month, with nonmetallic mineral products; printing and related support activities; computer and electronic produ1cts and electrical equipment leading the downward chart.

There was a resurge in new orders, which registered 52.9 per cent in November, from a contraction of 49.3 points achieved in the previous month, with 11 sub-sectors out of 16 reporting increase.

The supplier delivery time index for manufacturing sub-sectors declined for the tenth consecutive month at 47.3 percent, although the decline was at a slower rate when compared with the level in October 2015. However, six sub-sectors reported a faster delivery time.

In the raw materials inventory index, it dropped to 52.2 per cent in November from the 53.1 per cent obtained in the preceding month, with nine of the 16 sub-sectors reporting higher raw materials inventories, and seven reporting lower inventories.

The non-manufacturing sector contracted in November, after seven consecutive months of expansion, declining to 49.6 per cent from the 51.9 percent in the preceding month.

Out of the 18 sub-sectors under the non-manufacturing index, 10 declined, with the educational services remaining unchanged, while seven others recorded growth.

Though business activity remained upbeat in the period under review for the eighth consecutive month, it grew at a slower rate, compared with the level in the preceding month.

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