Nigeria’s manufacturing, service and agricultural sectors saw a decline in July after the composite Purchasing Managers Index (PMI) stood at 49.7 points, indicating a contraction in economic activities for the thirteenth consecutive month.
This also impacted employment as the Industry Sector Employment Level index in July 2024 also fell to 47.0 points.
The Central Bank of Nigeria disclosed this in its Purchasing Managers Index for July.
An index above 50.0 points indicates an expansion in business activities while below 50.0 points indicates a contraction in business activities. An index of 50.0 indicates a no-change situation.
CBN said in July 2024, the composite PMI stood at 49.7 points indicating a contraction in economic activities for the thirteenth consecutive month. However, the index shows improvement compared to the 48.8 points recorded in June, 2024.
The apex bank said New Orders and Employment contracted at a slower rate compared to the levels recorded in the previous month.
The sectoral breakdown shows that the Services Sector recorded expansion for the second consecutive month, while the Industry and Agricultural Sectors registered slower contraction when compared to the level recorded in the previous month.
Within the industry sector, the manufacturing, construction and mining & quarrying; electricity, gas and water supply subsectors all recorded contractions in the review month.
The CBN explained, “In July 2024, the Industry Sector PMI at 48.3 points, recorded the sixth consecutive month of contraction. The Manufacturing; Mining, Quarrying, Electricity, Gas, and Water Supply; and Construction subsectors registered declines in July 2024.
“Of the 17 subsectors surveyed, 11 subsectors recorded contraction while the remaining six subsectors recorded expansion in the month under review. The subsectors with the highest contraction and highest expansion are Transportation Equipment and Furniture & Related Products, respectively.”
The report said the Industry Sector Employment Level index in July 2024 stood at 47.0 points, indicating contraction in the level of employment.
CBN disclosed that eight subsectors reported a contraction in the level of employment with the Printing & Related Support Activities reporting the highest contraction.
Seven subsectors reported growth in employment level, while Primary Metal and Transportation Equipment subsectors reported stationary levels in July.
However, the CBN further revealed that the Industry Production Index registered expansion at 50.5 points in July 2024, indicating growth in production for the second consecutive month.
The index shows that eight subsectors reported growth in production during the review month with Water Supply, Sewerage & Waste Management recording the highest growth, Printing & Related Support Activities Subsector was stationary, while the
remaining eight subsectors registered declines in production with Transportation Equipment reporting the highest contraction
The report further showed that Agriculture Sector index stood at 49.7 points in July 2024, indicating a contraction in economic activities for the third consecutive month.