- Nigeria’s Manufacturing Sector Sustains Growth for Sixth Consecutive Month
Nigeria’s factory production continued to grow in September, according to the Central Bank of Nigeria report released on Thursday.
The Manufacturing Purchasing Managers’ Index expanded 55.3 in September, lower than the 57.4 recorded in the preceding month but it is above the 50 level that separates expansion from contraction and also indicates the sector consistency. The manufacturing sector has now sustained growth for a sixth consecutive month.
According to the report, 14 of the 16 sub-sectors surveyed grew in the following order; appliances & components; electrical equipment; chemical & pharmaceutical products; nonmetallic mineral products; printing & related support activities; plastics & rubber products; food, beverage & tobacco products; furniture & related products; transportation equipment; cement; paper products; computer & electronic products; textile, apparel, leather & footwear and fabricated metal products.
While production in the manufacturing sector stood at 58.8 in September, the fastest in recent time and the seventh consecutive month of consistent growth.
Also, the report showed new orders grew at 53.5 in the month, with 10 sub-sector reporting growth, while the remaining 6 contracted in the month of September. Another indication of rising business confidence and demands.
Since the manufacturing sector rebounded 6 months ago following central bank decision to appropriate foreign exchange to manufacturers, the sector has sustained growth and aid economic recovery.
Experts believe continuous forex intervention will further deepen economic growth and boost productivity, new job creation, and wage growth. The economy grew at 0.6 percent rate in the second quarter.
Meanwhile, the Nigerian crude oil, Brent crude oil rose to 26-month high earlier this week to trade at $58.43 a barrel after Turkey threatened to shut down Kurdistan crude supplies through its territory.
The Naira remains stable against the U.S. dollar this week, trading between N366 and N369 to the greenback.