Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Get Data
    • Macro-Economic News
    • Research Analysis
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Get Data
    • Macro-Economic News
    • Research Analysis
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
Nairametrics
No Result
View All Result
Home Spotlight

Nigeria’s manufacturing sector contracts in July, as COVID-19 woes worsens

Abiola Odutola by Abiola Odutola
July 30, 2020
in Spotlight
Manufacturing: Momentum in activities slows in January, CBN’s forex intervention has encouraged influx of raw materials - Manufacturers , Manufacturing: Activity level slumps on COVID-19
Share on FacebookShare on TwitterShare on Linkedin

Nigeria’s economy continues to grapple with the ripple effects of the COVID-19 pandemic, as the manufacturing sector shrunk further in the month of July 2020. This is contained in the latest Purchasing Manager’s Index (PMI) report released by the Central Bank of Nigeria.

According to the latest data released by the apex bank, Manufacturing PMI in the month of July stood at 44.9 index points, indicating a contraction in the manufacturing sector for the third consecutive month.

The latest figure shows marginal growth compared to 41.1 and 42.4 index points recorded in June and May 2020 respectively. Meanwhile, the Nigerian economy remains on a tepid trajectory as the COVID-19 pandemic continues to disrupt both supply and demand chains of production.

RelatedPosts

Nigerian Stocks: List of Dividends announced in 2021

First Bank, Ecobank among best performing Nigerian stocks in the past 3 months

READ MORE: Loan: CBN disburses over N300 billion to SMEs, health, agric, manufacturing sectors

Contraction subsists across key sub-sectors

Of the 14 surveyed subsectors, the transportation equipment subsector reported growth (above 50% threshold) in the reviewed month, while nonmetallics in the mineral products sector reported no change. The improvement in transportation must have been driven by the gradual easing of lockdown across the country.

However, the remaining 12 subsectors shrank in the following order: printing & related support activities; primary metals; fabricated metal products; paper products; food, beverage & tobacco products; chemical & pharmaceutical products; furniture & related products; electrical equipment; plastics & rubber products; petroleum & coal products; textile, apparel, leather & footwear, and cement.

Also, the non-manufacturing PMI stood at 43.3 index points, indicating a contraction for the fourth consecutive month, though showing signs of recovery compared to 35.7 and 25.3 index points recorded in June and May respectively.

READ MORE: Insufficient electricity, unfavourable economy are among challenges hindering companies –CBN

Of the 17 surveyed subsectors, only arts, entertainment & recreation, and transportation & warehousing recorded growth (above 50% threshold), while the remaining 15 subsectors recorded  declines in July 2020.

Manufacturing components remain negative in July

The CBN report usually has five PMI components, which include Production level, New orders, Supplier Delivery time, Employment level, and Raw material inventory. In the month of July, four of the five components shrank in the following order: Production level (44.7), New orders (43.1), Employment level (40), and Raw material inventory (43.2).

However, supplier delivery time witnessed growth at 56.4 points in July, an improvement which is expected to improve in the coming months as nationwide lockdown continues to easy and economic activities improve.

READ MORE: Jim Ovia: From a clerk to founder of Nigeria’s most profitable bank

What this means

PMI is a survey conducted by the Central Bank of Nigeria, showing changes in the level of business activities in the current month compared with the preceding month.

For each of the indicators measured, this report shows the diffusion index of the responses, which is computed as the percentage of responses with positive change plus half of the percentage of those reporting no change, except for supplier delivery time, which is computed as the percentage of responses with negative change plus half of the percentage of those reporting no change.

The latest PMI figures show that Nigeria’s manufacturing and the non-manufacturing sectors are yet to recover from the effects of COVID-19 lockdown, which caused disruption in all economic activities across the country.

Also, the continued contraction in the manufacturing sector implies that unemployment may rise further in the economy. According to the Economic Sustainability plan recently released by the Nigerian government, unemployment may hit c.40% by the end of 2020— a trend that may leave the Nigerian economy in a sustained deep recession.

Related

Tags: Business NewsCovid-19FeaturedManufacturing PMINigeria News

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Hot forex
Cornerstone
Mega Millions
Polaris Bank
Access Bank
Bankers Committee
First bank


FCMB
Ikeja Electrics




    Business News | Stock Market | Money Market | Cryptos | Financial Literacy | SME |

    Recent News

    • MTN Nigeria appoints Onyinye Ikenna-Emeka as General Manager, Fixed Broadband
    • FG to accelerate deployment of 5G services with approval for Microsoft Enterprise agreement
    • Bulls are back: Nigerian stock market gains N8 billion

    Follow us on social media:

    Recent News

    MTN Nigeria appoints Onyinye Ikenna-Emeka as General Manager, Fixed Broadband

    MTN Nigeria appoints Onyinye Ikenna-Emeka as General Manager, Fixed Broadband

    June 30, 2022
    FG approves digital ID for Internally Displaced Persons - Pantami, Minister denies approving NIPOST license fee increment , Isa Ali-Pantami, NCC to determine number of phone numbers entitled to an individual  

    FG to accelerate deployment of 5G services with approval for Microsoft Enterprise agreement

    June 30, 2022
    • ABOUT US
    • CONTACT US
    • PRODUCTS
    • ANDROID APP
    • iOS APP
    • DISCLAIMER
    • CAREERS
    • PRIVACY POLICY

    © 2022 Nairametrics

    No Result
    View All Result
    • Home
    • Exclusives
      • Financial Analysis
      • Corporate Stories
      • Interviews
      • Investigations
      • Metrics
    • Markets
      • Cryptos
      • Commodities
      • Equities
        • Dividends
        • Stock Market
      • Fixed Income
      • Market Views
      • Securities
    • Industries
      • Company News
      • Consumer Goods
      • Content Partners
      • Corporate deals
      • Corporate Press Releases
      • Energy
      • Entertainment
      • Financial Services
      • Hospitality & Travel
      • Manufacturing
      • Real Estate and Construction
      • Tech News
    • Economy
      • Get Data
      • Macro-Economic News
      • Research Analysis
    • Business News
    • Financial Literacy
      • Career tips
      • Personal Finance
    • Lifestyle
      • Billionaire Watch
      • Profiles
    • Opinions
      • Blurb
      • Op-Eds

    © 2022 Nairametrics

    Social Media Auto Publish Powered By : XYZScripts.com