- Manufacturing Activities Declined Marginally in January
The Nigerian manufacturing activities dipped slightly in January, according to the data released by the Central Bank of Nigeria on Wednesday.
Manufacturing Purchasing Managers’ Index declined from a record high of 59.3 in December to 57.3 in January. While this was slower than the preceding month, it represents the tenth consecutive month of expansion. A reading above 50 levels indicates expansion.
According to the report, 13 of the 16 subsectors surveyed recorded growth in the following order: computer and electronic products, nonmetallic mineral products, cement, textile, apparel, leather and footwear, printing and related support activities, appliances and components, primary metal, petroleum and coal products, food, beverage and tobacco products, furniture and related products, paper products, fabricated metal products, plastics and rubber products.
While electrical equipment, chemical and pharmaceutical products, and transportation equipment contracted in the month.
However, manufacturing production index stood at 59.6, with 11 of the 16 subsectors recording expansion, while 3 remained unchanged in the month and 2 declined. Despite declining from 63.2 in December, manufacturing production has now expanded for eleventh consecutive months.
Employment gauge showed hiring drop slightly from 53.9 points recorded in December to 53.3 in January.
“Improved economic activities are yet to reflect on the labour market, another indication of over-concentration on money market by both domestic and foreign investors. Therefore, while business confidence is growing among established manufacturers, new investment in the sector is low, hence, lack of new job creation,” said Samed Olukoya, a foreign exchange research analyst at Investors King Ltd.
