CBN heaadquarters (Image: Guardian Nigeria)

Despite headwinds in inflation, the manufacturing sector has continued to grow, according to the latest central bank of Nigeria’s PMI report.

The report for August 2019 shows that the activities in the manufacturing sector grew for the  29th consecutive month.

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Manufacturing Purchasing Managers’ Index (PMI) stood at 57.9 index points. The index grew at a faster rate when compared to the index in July.

In a 14 sub-sectors surveyed, 13 reported growth in the review month in the following order: cement; petroleum and coal products; food, beverage and tobacco products; transportation equipment; printing and related support activities; chemical and pharmaceutical products; furniture and related ; products; fabricated metal products; non-metallic mineral products; electrical equipment; textile, apparel, leather and footwear; plastics and rubber products; and primary metal.

However, the paper product sub-sector recorded a decline in the review period.

The report showed that at 58.7 points, the production level index for the manufacturing sector grew for the 30th consecutive month in August 2019.

The index indicated a slower growth in the current month when compared to its level in July 2019.

In all, eight of the 14 manufacturing sub-sectors recorded an increased production level, three remained unchanged, while three recorded decline.

Also, at 57.1 points, the new orders index grew for the 29th consecutive month, indicating an increase in new orders in August 2019.

“The index grew at a slower rate when compared to its level in July 2019. Nine sub-sectors reported growth, four remained unchanged, while one contracted in the review month.

“The manufacturing supplier delivery time index stood at 58.3 points in August 2019, indicating faster supplier delivery time. “The index has recorded growth for 27th consecutive months. Ten of the 14 subsectors recorded improved suppliers’ delivery time, while two remained unchanged and two recorded decline in the review period,” the report stated.

“The employment level index for August 2019 stood at 57.1 points, indicating growth in employment level for the twenty-eighth consecutive month.

“Of the 14 sub-sectors, 10 reported increased employment level, two reported unchanged employment level while two reported decreased employment in the review month,”it stated.

Furthermore, the report showed that the manufacturing sector inventories index grew for the 29th consecutive month in August 2019.

It showed that at 58.7 points, the index grew at a faster rate when compared to its level in July 2019.

In all, 10 of the 14 sub-sectors recorded growth, while four sub-sectors reported unchanged raw material inventories in the review month.

“Business activity and inventories grew at a faster rate, while new orders and employment level grew at a slower rate in August 2019

The composite PMI for the non-manufacturing sector stood at 58.8 points in August 2019, indicating expansion in the non-manufacturing PMI for the 28th consecutive month.