Nigeria’s Manufacturing Sector Recovers in November -CBN

Nigeria’s manufacturing sector expanded for the first time in six months in November, according to the latest report from the Central Bank of Nigeria.

In the manufacturing report released on Wednesday, the apex bank said the Manufacturing Purchasing Managers’ Index (PMI) stood at 50.2 index points in November. Slightly above the 50 percent threshold that separates expansion from contraction and represents the first expansion since May 2020.

Out of the 14 subsectors surveyed during the month, 8 subsectors reported expansion in the following order: Transportation equipment, Nonmetallic mineral products, Furniture & related products, Cement, Textile, apparel, leather & footwear, Plastics & rubber products, Food, beverage & tobacco products and Printing & related support activities.

The 6 remaining subsectors contracted in the following order: Electrical equipment, Petroleum & coal products, Chemical & pharmaceutical products, Primary metal, Paper products and Fabricated metal products.

Accordingly, the production level expanded to 51.7 index points in November, signaling recovery from the contraction started in May 2020. Seven of the 14 subsectors surveyed recorded expansion in production levels while 4 subsectors posted contraction. The remaining 3 subsectors were unchanged.

Demand in the manufacturing sector also grew in the month of November, according to the Central Bank of Nigeria’s report. The new orders index for the manufacturing sector stood at 50.5 index points with seven subsectors reporting growth in new orders. Three subsectors remained flat while 4 subsectors contracted.

However, new job creation in the sector remained weak at 47.3 index points. Indicating contraction in employment level for the eighth consecutive months. Only 5 subsectors recorded growth in employment in November, the remaining 9 subsectors posted lower new job creation.