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    Manufacturing Index Contracts In December

    manufacturing index

    By Babajide Okeowo

    The Manufacturing Purchasing Managers’ Index (PMI) for December 2020 stood at 49.6 index points in December, this indicates a contraction from the expansionary level recorded in November 2020.

    This is contained in the PMI report for December 2020 published by the Statistics Department of the Central Bank of Nigeria (CBN).

    According to the report, of the 14 surveyed sub-sectors, four sub-sectors reported expansion (above 50% threshold) in the review month in the following order: Transportation equipment, Non-metallic mineral products, paper products, and food, beverage, and tobacco products.

    Others were textile, apparel, leather, and the footwear sub-sector remained stationary.

    On the other hand, the remaining nine sub-sectors reported contractions in the following order: primary metal, petroleum, and coal products; cement, electrical equipment, fabricated metal products, printing, and related support activities, plastics and rubber products; chemical and pharmaceutical products and furniture and related products.

    Also, the December 2020 production level index for the manufacturing sector stood at 51.6 points, indicating expansion for two consecutive months. The report showed that of the 14 sub-sectors surveyed, six sub-sectors recorded an increased production level, four sub-sectors reported a stationary level of production, while four sub-sectors recorded declines in production in December 2020.

    “The new orders expanded for the third consecutive months in December. The index stood at 50.2 points in December 2020.

    “Five sub-sectors reported expansion in new orders, two sub-sectors remained stationary while the remaining seven recorded contractions in the review month.

    “The manufacturing supplier delivery time index stood at 51.2 points in December 2020, this indicates that supplier delivery time was faster for the eighth consecutive months.

    “Eight of the 14 subsectors recorded improved suppliers’ delivery time, three sub-sectors remained stationary, while three sub-sectors recorded slower delivery time,” the report stated.

    The Manufacturing and Manufacturing Purchasing Manager Index report on businesses is based on survey responses indicating changes in the level of business activities in the current month compared with the preceding month.



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