The Purchasing Managers’ Index (PMI) has shown that the industry sector of the economy has continued its contraction at 49.7 points in September amidst high energy costs, foreign exchange issues and naira volatility.
This has triggered a decline in employment levels with the paper product subsector a worse hit.
However, the report published by the Central Bank of Nigeria (CBN) showed that the composite PMI rose to 50.5 points.
An index above 50.0 points indicates an expansion in business activities, while below 50.0 points indicates a contraction in business activities.
The sectoral breakdown of the report shows that the services sector recorded an expansion of 51 points while the agricultural sector registered expansion for the second consecutive month.
“The industry sector, though contracted, registered a slower contraction when compared to the level recorded in August 2024,” the report said.
A further breakdown shows that among the 36 subsectors reviewed across the industry, services and agriculture sectors, 23 subsectors reported growth in economic activities with cement reporting the highest growth in September.
However, 10 subsectors experienced a decline in economic activities with transportation & warehousing reporting the highest decline.
According to the report, the composite employment index contracted at 49.1 index points in September which indicates a decline in the level of employment.
The report disclosed that sixteen subsectors reported a contraction in employment level, with the paper product subsector recording the highest decline in the review month.
The transportation equipment and water supply, sewerage & waste management subsectors remained unchanged, while the remaining 18 subsectors reported increased employment levels with the forestry subsector having the highest employment index, according to the PMI.