- Manufacturing PMI Expands at Slower Pace for Second Consecutive Month
Nigeria’s manufacturing sector sustained growth in February but at a slower pace than December 2017 and January 2018.
The Central Bank of Nigeria on Wednesday reported that the Manufacturing Purchasing Managers’ Index stood at 56.3 in February, slightly below the 57.3 recorded in January. A reading above 50 indicates expansion and vice versa.
While this was the 11th consecutive months of increase, it also represents second consecutive months of slowdown in business activities in the manufacturing sector after activities peaked at a record-high of 59.3 in December.
According to the regulator, ten of the 15 subsectors surveyed recorded growth in February in the following order: Plastics rubber products; textile, apparel, leather and footwear; appliances components; paper products; primary metal; petroleum and coal products; chemical and pharmaceutical products; food, beverage and tobacco products; electrical equipment and furniture and related products.
While the five remaining subsectors contracted in the following order: printing and related support activities; cement; nonmetallic mineral products; fabricated metal products; and transportation equipment.
Manufacturing production gauge stood at 57.8 in the month, also lower than the 59.6 recorded in January. Production in the sector was weighed upon by six of the 15 subsectors that were largely unchanged, while just 6 subsectors recorded increase in production and the remaining 3 subsectors declined in production. However, this is the twelfth consecutive months of increase in production despite slowing business activities in the manufacturing sector.
Similarly, new orders grew slower in the month when compared to what was obtained in January. Demands stood at 55.6 in February, again lower than January’s new orders.
Employment index of the sector showed job creation expanded at 53.9, slightly higher than the 53.3 recorded in January. Indicating job creation continued to grow despite the headwinds.
Meanwhile, the National Bureau of Statistics on Tuesday announced Africa’s largest economy grew at a 0.83 percent rate in 2017 after reporting a 1.92 percent growth rate in the final quarter of the year.