Production index contracts in December

The Manufacturing Purchasing Managers Index (PMI) was 49.6 index points in December, indicating a contraction from the level of expansion recorded in November 2020.

The Central Bank of Nigeria (CBN) revealed this in its December 2020 PMI report published on its website.

According to the report, of the 14 subsectors surveyed, four subsectors reported growth (above the 50% threshold) in the month of review in the following order: Transport equipment, Non-metallic mineral products, paper and food products, beverages and tobacco products.

The rest was the textile, clothing, leather and footwear sub-sector and is still stationary.

On the other hand, the remaining nine subsectors reported contractions in the following order: primary metal, petroleum products and coal products; cement, electrical equipment, finished metal products, printing and related ancillary activities, plastic and rubber products; chemical and pharmaceutical products and furniture and related products.

Also, the production level index in December 2020 for the manufacturing sector was 51.6 points, indicating an expansion for two consecutive months. The report showed that out of 14 surveyed subsectors, six subsectors recorded an increased level of production, four subsectors reported a steady level of production, while four subsectors recorded a decline in production in December 2020.

“The new orders were expanded for the third month in a row in December. The index was 50.2 points in December 2020.

“Five sub-sectors reported an increase in new orders, two sub-sectors remained stationary, while the remaining seven recorded a decrease in the month of the review.

“The supplier delivery time index in December 2020 was 51.2 points, which indicates that the delivery time of suppliers was faster for the eighth month in a row.

“Eight of the 14 sub-sectors recorded an improvement in supplier delivery times, three sub-sectors remained stationary, while three sub-sectors recorded slower delivery times,” the report said.