The Central Bank of Nigeria (CBN) said that the country’s manufacturing sector recorded slower growth in May, despite a relatively fair Purchasing Managers Index (PMI) which stood at 56.5 points as against 56.9 index point recorded in April.
The index point for May marked the 14th consecutive month of expansion in the country’s manufacturing sector.
The Manufacturing PMI in May stood at 56.5 index points, indicating expansion in the manufacturing sector for the 14th consecutive month. The index, however, grew at a slower rate when compared to the index in the previous month.-CBN
According to the report, slower growth in orders and inventories are mainly responsible for the reduced growth. Other indicators such as inventories production level, supplier delivery time and employment level all grew.
PMI gauges the health of the manufacturing sector.
The Central Bank of Nigeria’s Statistics Department conducts the survey across 31 locations in the country. Respondents are drawn from the purchasing and supply executives of manufacturing and non-manufacturing entities.
It should be noted that when the PMI is above 50 points, it shows expansion in the manufacturing/non-manufacturing sector of the economy. On the other hand, a composite PMI of less than 50 points indicates that there is a contraction. Also, 50 points indicate that zero change has taken place.
