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Thursday 2 June 2016

Decline in economic activities persisted in May- CBN

Central Bank of Nigeria (CBN) yesterday said that the decline in economic activities in the first quarter of the year persisted in May. The CBN disclosed this in its Purchasing Managers Index (PMI) report for May.
Governor, Central Bank of Nigeria (CBN), Mr Godwin Emefiele
 Governor, Central Bank of Nigeria (CBN), Mr Godwin Emefiele 

The report revealed that, “Out of 16 sub-sectors in the manufacturing sector, eleven sub-sectors recorded decline in the review month while five sectors recorded expansion. Out of eighteen non-manufacturing sub-sectors, fourteen sub-sectors recorded decline, while four subsectors recorded expansion.” In the manufacturing sector, it said “Production level, new orders, employment level and raw material inventories declined at a slower rate; supplier delivery time however improved at a slower rate.” In the non-manufacturing sector, “Business activity and employment level declined at slower rate; while new orders and raw materials inventories declining at faster rate”. The Manufacturing and Non-Manufacturing Purchasing Managers Index (PMI) CBN’s Manufacturing and Non-Manufacturing Purchasing Managers Index (PMII)  are based on survey of manufacturing and non-manufacturing executives, who indicate change or no change in the level of business activities in May compared with the previous month. The CBN stated that, “The Manufacturing PMI rose to 45.8 index points in May 2016, compared to 43.7 in the preceding month. This implies that the manufacturing sector declined at a slower rate during the review period. “Of the sixteen manufacturing sub-sectors, eleven recorded decline in the review month in the following order: primary metal; paper products; petroleum & coal products; furniture & related products; fabricated metal products; printing & related support activities; non-metallic mineral products; electrical equipment; textile, apparel, leather & footwear; food, beverage & tobacco products and chemical & pharmaceutical products. “The remaining five sub-sectors however recorded expansion in the following order: computer & electronic products; appliances and components; cement; plastics & rubber products and transportation equipment. “The composite PMI for the non-manufacturing sector recorded decline for the fifth consecutive month. The index remained at the 44.3 index points registered in the preceding month. Of the eighteen non-manufacturing sub-sectors, fourteen recorded decline in May 2016 in the following order: professional, scientific, & technical services; public administration; management of companies; construction; real estate, rental & leasing; information & communication; utilities; finance & insurance; agriculture; wholesale trade; accommodation & food services; health care & social assistance; repair, maintenance/washing of motor vehicles and electricity, gas, steam & air conditioning supply. “The water supply, sewage & waste management and transportation & warehousing sub-sectors remained unchanged, while the remaining two subsectors recorded growth in the order: arts, entertainment & recreation and educational services.”

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