Nigeria’s Manufacturing PMI Expands in March

US Manufacturing
  • Nigeria’s Manufacturing PMI Expands in March

Activity in the Nigerian manufacturing sector expanded for the twelfth consecutive month in March.

The manufacturing Purchasing Managers Index stood at 56.7 in March, slightly higher than the 56.3 recorded in February, the Central Bank of Nigeria reported on Tuesday.

According to the report, out of the 14 subsectors surveyed by the apex bank, 11 recorded growth in the following order: electrical equipment; cement; petroleum and coal products; food, beverage and tobacco products; chemical and pharmaceutical products; fabricated metal products; paper products; transportation equipment; plastics and rubber products; textile, apparel, leather and footwear and primary metal. While the remaining 3 subsectors contracted in the following order: nonmetallic mineral products; furniture and related products and printing and related support activities.

Production in the sector grew at 59.1 in March, up from 57.8 recorded in February. Making it the thirteenth consecutive month of increase. However, just seven of the 14 subsectors recorded increase in production level during the month, three of the subsectors were unchanged while the remaining four declined in production level.

Accordingly, demand in the sector grew at 56.1, better than 55.6 from the previous month. Again, less than half (6) of the subsectors recorded growth, 5 unchanged and the remaining 3 contracted. Suggesting that while activities in the manufacturing sector are growing, the surge in new orders is not broad-based.

Same with employment gauge of the sector, the sector sustained job creation but just 7 of the subsectors created new jobs in March, while 5 reduced jobs and 2 subsectors were unchanged.

Therefore, despite growing business activities in the manufacturing sector, new job creation remained low and uneven after 12 months of consecutive growth.

About the Author

Samed Olukoya
CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and, with over a decade long experience in the global financial market. Contact Samed on Twitter: @sameolukoya; Email: [email protected]

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