fbpx
Edit Content

Nigeria’s Manufacturing PMI Contracts In July At 44.9 Index Points As COVID-19 Hits Different Sectors

Nigeria's Manufacturing PMI

Nigeria’s Manufacturing Purchasing Managers’ Index (PMI) has taken a downward slope, as the Nigerian economy continues to take a hit from the effects of the Covid-19 pandemic.

According to the latest Purchasing Manager’s Index (PMI) report released by the Central Bank of Nigeria (CBN), the manufacturing sector went south and took a downward slope in the month of July 2020. 

The Manufacturing PMI in the month of July stood at 44.9 index points, indicating a contraction in the manufacturing sector for the third month in a row. The report has it that there was a marginal growth compared to 41.1 and 42.4 index points recorded in June and May 2020 respectively. 

Start Your Business in 30 Days Even If You Don't Have An Idea
Start Your Business in 30 Days Even If You Don’t Have An Idea

As the COVID-19 pandemic continues to disrupt both supply and demand chains of production, there is every possibility of a further decline in the PMI of subsequent months. 

Industries That Stood Above The 50% Threshold 

According to the report, on the surveyed subsectors, the only sub-sector that recorded above a 50% threshold was the transportation industry. Obviously, this is due to the gradual easing of lockdown across the country and the movement across board.

However, the remaining subsectors took an economic downturn in the following order: printing & related support activities; primary metals; fabricated metal products; paper products; food, beverage & tobacco products; chemical & pharmaceutical products; furniture & related products; electrical equipment; plastics & rubber products; petroleum & coal products; textile, apparel, leather & footwear, and cement.

Excluding, a few other surveyed subsectors, like arts, entertainment & recreation, and warehousing, which recorded growth above the 50% threshold.

What You Need To Know About PMI

The Purchasing Managers’ Index (PMI) in Nigeria is a survey conducted by the apex Bank – CBN. It shows the changes in the level of business activities in the current month compared with the preceding month. The report helps entrepreneurs better understand their industries. 

Furthermore, this index shows the direction of economic trends in the manufacturing and service sectors. So, the purpose of the PMI is to provide information about current and future business conditions to company decision-makers, analysts, and investors.

According to the latest PMI figures, it is obvious that Nigeria’s manufacturing and the non-manufacturing sectors are yet to recover from the effects of COVID-19 lockdown.

The value and movements in the PMI and its components can provide useful insight to entrepreneurs; principal individuals like decision-makers, market analysts, and investors. And it’s a leading indicator of overall economic activity in Nigeria. 

As a Nigerian entrepreneur, what is your take on this latest PMI report? We will like to hear your thoughts in the comments.

Let’s create visibility for your brand today and put your business on the world map. Contact us today to make your brand the preferred choice among our audience of entrepreneurs and business leaders.

To keep track of our activities, follow us on Instagram.

Share:

Facebook
Twitter
LinkedIn

Leave a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Join Entrepreneurs Family

No spam, only business insights and tips. 

Entrepreneurs Sign Up

Business Registration

Most Popular

Join Entrepreneurs Family

No spam, only business insights and tips. 

Entrepreneurs Sign Up

Related Posts

Best Freelance Jobs

5 Best Freelance Jobs That Require Little Professional Skills

The rise of the freelance economy marks a significant shift in the global job market. Today, millions are tapping into the benefits of freelancing, drawn by its remarkable growth over recent years. This surge is fueled by a demand for flexible work arrangements and the broad availability of remote work

Choosing the right online store

8 Tips on Choosing the Right Platform for Your Online Store

Choosing the right e-commerce platform is crucial for anyone planning to launch an online store. The platform you choose not only powers your business operations but also shapes the shopping experience you offer to customers. This decision affects how smoothly your operations run, the quality of your customer interactions, and

Business partnerships

What Small Businesses Need to Know Before Making Business Partnerships

Engaging in business partnerships is often a strategic move for small businesses looking to enhance their market presence and operational capabilities. These alliances can be a game-changer, and offer a plethora of benefits that can lead to sustained growth and innovation. However, the journey of forming partnerships is not without

How to identify market opportunities

How to Identify Market Opportunities for Business Growth

Every successful entrepreneur knows that the heart of business growth lies in effectively identifying and seizing market opportunities. But what exactly does this mean? Simply put, a market opportunity represents a gap in the current market that your business can fill to meet customer demand, outpace competitors, and drive revenue.

Scroll to Top

Join Entrepreneurs Family!

Get access to FREE business insights and funding opportunities daily.

Entrepreneurs Sign Up