- Manufacturing Index Grows At Faster Rate In October
The latest Central Bank of Nigeria (CBN)’s Purchasing Managers Index (PMI) report has revealed a growth in the Manufacturing sector.
The report released on Friday for October 2019 showed that the activities in the manufacturing sector grew for the 31st consecutive month.
Manufacturing Purchasing Managers’ Index (PMI) stood at 58.2 in the month of October. The index grew at a faster rate when compared to the 57.7 recorded in September. Suggesting that the border closure has little to zero effect on the manufacturing sector despite the surge in the prices of goods.
Experts had said the border closure will impact growth in the manufacturing sector as lack of importation of some of the products being moved through the land borders at a more competitive price would hurt demand due to an increase in price.
However, the availability of substitute products has helped minimize the effect of the ongoing border closure on the manufacturing sector.
In the 14 sub-sectors surveyed during the month, 13 reported growth in the following order: Petroleum and coal products, cement, electrical equipment, furniture and related products; fabricated metal products, printing and related support activities, textile, and apparel.
Others are leather and footwear, food, beverage and tobacco products, non-metallic mineral products, plastics and rubber products, primary metal, chemical and pharmaceutical products, and transportation equipment.
However, the paper product sub-sector recorded a decline in the review period.
The report showed that at 59.3 points, the production level in the manufacturing sector grew for the 32nd consecutive month in October 2019.
The index indicated a faster growth in the current month when compared to its level in September 2019.
In all, 11 out of the 14 manufacturing subsectors recorded an increased production level, while three recorded decline.