By Nse Anthony-Uko
ABUJA, (Sundiata Post) Nigeria’s economy continues to show strong signs that it is coming out of the recession as the Purchasing Managers Index which measures production activities in the country expanded in the month of May.
According to the report released by the Central Bank of Nigeria on Thursday, the Manufacturing PMI stood at 52.5 index points in May 2017 from 51.1 in April, indicating expansion in the manufacturing sector for the second consecutive month.
The PMI report also showed improvement in employment level which grew from a contraption of 46.6 index points in April to 50.7 in May. There was also improvement in production level and new orders which expanded to 58.7 and 50.5 index points respectively.
Ten of the 16 sub-sectors reported growth in the review month. Primary metal grew by 21.8 percentage points followed by petroleum and coal products.
Other sub-sectors which recorded growth in May include plastics and rubber products; paper products; electrical equipment; appliances and components textile, apparel, leather and footwear; cement; food, beverage and tobacco products and chemical and pharmaceutical products. The remaining six sub-sectors, transportation equipment; non-metallic mineral products; fabricated metal products; printing and related support activities; furniture and related products and computer and electronic products recorded contraction during the month of May.
Employment level index in May 2017 stood at 50.7 points, indicating growth in employment level after twenty-six consecutive month of contraction in employment. Of the 16 sub-sectors, seven, primary metal; plastics and rubber products; petroleum and coal products; paper products; appliances and components; cement and fabricated metal products recorded growth in employment, while the electrical equipment and textile, apparel, leather and footwear remained unchanged.
The production level index for manufacturing sector expanded for the third consecutive month in May 2017. The index at 58.7 points indicated an increase in production at a faster rate, when compared to the 58.5 points in the previous month. Of the 16 manufacturing sub-sectors only one, the transportation equipment sub-sector recorded decline in production, while the 15 others recorded increase in production level during the review month.
Also, the composite PMI for the non-manufacturing sector grew to 52.7 in May 2017 after 16 consecutive months of contraction. Of the 18 non-manufacturing sub-sectors, 10 recorded growth in the following order: agriculture; transportation and warehousing; educational services; electricity, gas, steam and air conditioning supply utilities; information and communication water supply, sewage and waste management; accommodation and food services; healthcare and social assistance; and finance and insurance.
The remaining eight sub-sectors, construction; professional, scientific, technical services; public administration; management of companies; arts entertainment and recreation; real estate rental and leasing; repair, maintenance/washing of motor vehicles; and wholesale/retail trade all recorded contraction in the month of May.
Business activity index rose to 56.2 points in May 2017 for the second consecutive month. The index grew at a faster rate, when compared to its level in the previous month. Fourteen sub-sectors recorded growth in the following order: agriculture; transportation and warehousing; electricity, gas, steam and air conditioning supply; utilities; educational services; information and communication; healthcare and social assistance.
Others are water supply, sewage and waste management accommodation and food services; public administration; finance and insurance; real estate rental and leasing; wholesale/retail trade; and repair, maintenance/washing of motor vehicles.
The management of companies sub-sector remained unchanged, while the remaining three sub-sectors recorded growth in the order: arts, entertainment and recreation; professional, scientific, and technical services; and construction.