MANUFACTURING PICKS UP SLIGHTLY

The Nigerian manufacturing sector appears to have picked up slightly in May when compared to April, according to recent Purchasing Managers index (PMI) released by the Central Bank of Nigeria statistical department.
However, it only meant reduction in the rate of decline of the sector within the month but even that is good enough news in these trying times.
According to the CBN report manufacturing composite index rose slightly to 45.8 in May compared to 43.7% in April. However, because the score is still below 50, the indication is of continued decline but at a slower pace.
Of the 16 manufacturing groups in the basket of the index, eleven had below 50 ratings thus implying decline although at different rates.
These were primary metals, paper products, petroleum and coal, furniture and related products, fabricated metal products, printing and non metallic mineral.
Others were electrical equipment, textiles, leather and footwear, food beverages and tobacco and chemical and pharmaceuticals.
The rest five sectors had ratings that indicated growth, again at different rates. These were computer and electronic, appliances and components, cement, plastics and rubber and transportation equipment.
The score by cement and transportation equipment indicated faster growth than in April while plastics and computer and electronics were stretching limbs that shrunk in April.
As for the non manufacturing sector, downhill was more the rule in May. In terms of business activity for example, 13 of the 16 covered groups showed decline with faster or slower almost at par.
Of the other two, only one sector indicated faster growth than in April while two were recovering from contraction.
The statistics department of the CBN conducts the survey every month amongst purchasing executives with questionnaire that tries to monitor production level, new orders, supplier delivery time, employment level, and raw materials inventory for manufacturing sector. These are given standard weights in the composite index.
As for non manufacturing, business activity, new orders, employment level and raw materials inventory compose the basket with equal weight of 25% each.
The May survey was conducted by the Statistics department of the CBN between 14 and 22 May with 78.6% response rate recorded.

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