- Nigeria’s Manufacturing Sector Expands in May
The ongoing economic recovery plan has started impacting the economy after data showed the manufacturing sector expanded for the second consecutive month in May.
According to the Purchasing Managers’ Index (PMI) report for May, the index stood at 52.6, indicating the manufacturing sector is sustaining April growth following the introduction of investors and exporters forex window. This is above the 50 level separating expansion from contraction.
The report released by the Central Bank of Nigeria, CBN, showed 10 of 16 the sub-sectors reported grew in May. While, the remaining 6 sub-sectors declined in this order: transportation equipment; nonmetallic mineral products; fabricated metal products; printing & related support activities; furniture & related products and computer & electronic products.
Also, the report showed that production index for manufacturing surged to 58.7 in May from 58.5 recorded in April. Making it the third consecutive month increase.
“The surge in the manufacturing activities further validated the ongoing business policy by the federal government to ease business and ensure manufacturers access forex at a market-determined rate,” said Samed Olukoya, a foreign exchange research analyst at Investors King Ltd.
“Gradually confidence is returning to the market as you can see from the surge in the index for new orders,” he added.
The new order index for May rose to 50.5, this is the second consecutive growth in new orders this year.
Naira gained against the greenback to trade at N374 a dollar.