Business

CBN Report: Economy contracted in May, manufacturing worst hit

Per Second NewsJune 1, 20201 Mins read1k

The Central Bank of Nigeria (CBN) has released its report on the economy indicating that the nation’s manufacturing sector contracted.

It is the first time after the sector recorded expansion for 36 consecutive months.

The CBN’s Statistics Department published this in its Purchasing Managers Index (PMI) survey report for May 2020 with Manufacturing PMI standing at 42.4 index points.

Of the 14 surveyed subsectors, only the electrical equipment sector reported growth (above 50 per cent threshold) in the review month, while the remaining 13 subsectors reported declines in the following order : cement; petroleum and coal products; printing and related support activities.

Others are furniture and related products; textile, apparel, leather and footwear; paper products; fabricated metal products; food, beverage and tobacco products; chemical and pharmaceutical products; transportation equipment; plastics and rubber products; non-metallic mineral products; appliances and components and primary metal.

The report also showed that one subsector recorded increased production level, four remained unchanged, while nine subsectors recorded declines in production in the month.

“At 42.8 points, the new orders index declined after 36 consecutive months of growth, indicating declines in new orders in May 2020.”Three subsectors reported growth; two remained unchanged while nine recorded declines in the review month.

“The manufacturing supplier delivery time index stood at 65.2 points in May 2020, indicating growth in supplier delivery time. The index recorded growth from the contraction level of March,” the report states.