The Nigerian manufacturing sector declined in August, following a slowdown in business activities in the nation due to the global oil glut that crippled every facet of the economy.
The purchasing manager index that measures the activities of business managers in the manufacturing sector declined from 44.1 in July to 42.1 in August, the Central Bank of Nigeria report showed on Thursday. This indicated that the manufacturing sector is yet to rebound and fast declining if nothing is done.
According to the report, out of the total 16 manufacturing industries surveyed 15 recorded a decline in August. Only the electrical equipment industry remained unchanged in the month under review.
Also, the gauge showed that the productivity index fell to 40.5, making it the eight consecutive month the manufacturing output had declined this year.
Since the National Bureau of Statistics released its second quarter GDP report on Wednesday, many experts have called on the Central Bank to lower interest rates in order to create jobs and attack surging unemployment rate caused by the weak manufacturing sector that is weighed upon by high foreign exchange rate.
But few Bureau de Change operators have said the decision of the central bank to licensed 11 international money transfer agents will reduce the lack of liquidity substantially and compensate for whatever intervention the CBN has in place.
The Nigerian Naira plunged further to 425 against the United States dollar at the parallel market on Thursday, after trading at 420 on Wednesday.