A report released by the Central Bank of Nigeria (CBN) has shown that 12 of the 15 sub-sectors of the manufacturing sector recorded a growth in April.
According to the report, which is called the Purchasing Mangers’ Index for April 2018, the index grew at a faster rate than its March growth.
The sub-sectors that recorded growth are: petroleum and coal products, electrical equipment, appliances and components, printing and related support activities, textile apparel leather and footwear, fabricated metal products.
Others are chemical and pharmaceutical products, food, beverage and tobacco products, paper products, furniture and related products, plastics and rubber products, and transportation equipment.
The cement sub-sector did not report any change, while the non-metallic minerals and primary metal sub-sectors declined in the review month.
The production level index for the sector grew to 58.6 points, although slower than its March growth rate.
The report reads: “At 55.8 points, new orders index grew for the 13th consecutive month, indicating increase in new orders in April 2018.
“Seven sub-sectors reported growth, four remained unchanged while four contracted in the review month.
“The manufacturing supplier delivery time index stood at 57.4 points in April 2018, indicating faster supplier delivery time for the eleventh consecutive month.
“Eleven sub-sectors recorded improved suppliers’ delivery time, three remained unchanged while one sub-sector recorded delayed delivery time.”
PMI is an indicator of the health of the manufacturing sector. It considers five variables: new orders, inventory levels, production, supplier deliveries and the employment environment.
A reading under 50 represents contraction, above 50 represents growth and a reading of 50 indicates no change.