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Manufacturing Sustains Expansion in August

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  • Manufacturing Sustains Expansion in August

The manufacturing sector continues to expand despite recent headwinds. Activity in the sector grew for the twenty-ninth consecutive month in August, according to the Central Bank of Nigeria’s report released on Monday.

The manufacturing Purchasing Managers’ Index (PMI) expanded by 57.9 points in August, faster than the number recorded for July.

A total of 13 subsectors recorded growth out of the 14 subsectors surveyed during the month under review in the following order: cement; petroleum and coal products; food, beverage and tobacco products; transportation equipment; printing and related support activities; chemical and pharmaceutical products; furniture and related ; products; fabricated metal products; nonmetallic mineral products; electrical equipment; textile, apparel, leather and footwear; plastics and rubber products; and primary metal.

Only the paper products subsector declined during the month under review.

Production expanded at 58.7 points in the sector in August, making it the thirtieth consecutive month of increase. However, production grew at a slower pace when compared wth July number. Suggesting that activity in the month may have started winding down following P&ID judgment that is currently eroding business confidence in Nigeria.

Demands remain health in the sector, new orders grew at 57.1 points in August. The twenty-ninth consecutive month of growth. Still, sower than July level. Only nine subsectors recorded growth in demand, while 4 remained unchanged and 1 contracted.

Job creation in the manufacturing sector continued to grow at 57.1 points but this has failed to reflect on the larger population despite having over 20.9 million unemployed people. A total of 10 subsectors record improved in job creation, while two remained unchanged and the remaining two contracted.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.