The Manufacturing Purchasing Manager’s Index (PMI) declined to 42.1 index points in August 2016, compared to 44.1 in the preceding month, indicating that the manufacturing sector declined at a faster rate during the review period.
The Central Bank of Nigeria (CBN) disclosed this in the PMI report for August that was released yesterday.
According to the report, of the 16 manufacturing sub-sectors, 15 recorded a decline in August in the following order: nonmetallic mineral products; transportation equipment; petroleum and coal products; fabricated metal products; furniture and related products; cement; appliances and components; printing and related support activities; paper products; computer and electronic products; food, beverages and tobacco products; primary metal; textile, apparel, leather and footwear; plastics and rubber products; and chemical & pharmaceutical products. The electrical equipment sub-sector remained unchanged in the review period.
Also, at 40.5 index points, the report showed that the productivity index for the manufacturing sector declined for the eighth consecutive month. It declined at a faster rate than what was recorded in July 2016.
All the 16 manufacturing sub-sectors recorded declines in productivity last month in the following order: appliances and components; plastics and rubber products; petroleum and coal products; transportation equipment; nonmetallic mineral products; computer and electronic products; primary metal; paper products; electrical equipment; cement; fabricated metal products; food, beverages and tobacco products; furniture and related products; printing and related support activities; textile, apparel, leather and footwear; and chemical and pharmaceutical products.
Meanwhile, Renaissance Capital (RenCap), a research and financial advisory firm, has revised down its 2016 growth projection for Nigeria to -1.4 per cent from -0.5 per cent.
Nigeria’s economy contracted by 2.06 per cent year-on-year in the second quarter of 2016, compared with 2.4 per cent in the corresponding quarter of 2015.
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