Manufacturing Sector Expands at Slower Pace in February

• Manufacturing Sector Expands at Slower Pace in February

The Nigerian manufacturing sector grew at a slower pace in the month of February, according to a recent report released by the Central Bank of Nigeria.

Activity in the sector expanded at 58.3 index points, down from 59.2 recorded in January despite expanding for the thirty-fifth consecutive month.

Accordingly, out of the 14 subsectors surveyed, 12 reported growth above the 50 percent threshold in the following order: transportation equipment; petroleum & coal products; Nonmetallic mineral products; Paper products; cement; textile, apparel, leather & footwear; Furniture & related products; food, beverage & tobacco products; plastics & rubber products; Fabricated metal products; chemical & pharmaceutical products; plastic and rubber products and Electrical equipment.

While primary metal and Printing & related support activities subsectors declined during the month under review.

Production in the sector stood at 58.9 points, representing thirty-sixth consecutive month of growth but below the 59.6 points achieved in January. Suggesting growth in the sector might be staling, especially with the border closure hurting activities in the sector.

The report shows only 10 of the 14 subsectors surveyed recorded growth with 3 remaining unchanged while activity declined in 1 during the month.

The new order remained strong at 59.1 points despite declining slightly from 59.7 points in January. This was the thirty-fifth consecutive month of growth. Eleven subsectors reported surged in new orders while orders declined in three subsectors.

Employment in the manufacturing sector expanded for the thirty-fourth consecutive month in February at 56.4 points.

“Of the 14 subsectors, 9 reported increased employment level, 3 subsectors remain unchanged, while the electrical equipment and printing & related support services subsector recorded lower employment level in the review month.”