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Industrial activities contract amid slow economic recovery

By Tobi Awodipe 
07 October 2024   |   1:28 am
Activities in Nigeria’s industrial sector contracted again in September, marking the ninth consecutive decline in 2024 with PMI at 49.7. This is contained in the Purchasing Managers’ Index (PMI) published by the Central Bank of Nigeria (CBN).   

Activities in Nigeria’s industrial sector contracted again in September, marking the ninth consecutive decline in 2024 with PMI at 49.7. This is contained in the Purchasing Managers’ Index (PMI) published by the Central Bank of Nigeria (CBN).   

  
The sectoral breakdown of the September PMI revealed that the services sector expanded for the fourth consecutive month, while the agricultural sector saw its second consecutive month of growth.
  
Although the industry sector remained in contraction, the rate of contraction slightly slowed compared to what was recorded in August 2024. However, the manufacturing subsector has continued to decline with most indicators (except raw materials), showing a contraction, compared with the agricultural and service sectors with better indicators.
  
The report noted that in September 2024, the industry sector PMI stood at 49.7 points and although the sector contracted, the figure represented a little improvement compared to the level in August.
  
An analysis of the aggregate sector showed that the mining, quarrying, electricity, gas, and water supply and construction subsectors registered expansions, while the manufacturing subsector showed a decline in September 2024.
  
Among the 17 subsectors surveyed, four recorded contractions, three remained unchanged, while the remaining 10 indicated expansion. The subsector with the highest contraction was paper products, whereas cement recorded the highest expansion.

 

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