Recession receding as manufacturing sector expands for 3rd consecutive month
Fresh data from the Central Bank of Nigeria (CBN), has shown that the manufacturing sector if the economy witnessed expansion for the third consecutive month.
Statistics from the Purchasing Managers’ Index (PMI) which measures the size of the nation’s manufacturing sector rose to 52.9 index points at the end of June with a 0.4 percent increase from 52.5 percent of its value in May 2017.
The CBN data, 12 of the 16 subsectors reported growth in the review month in the following order: computer & electronic products; paper products; plastics & rubber products.
Remaining sectors included primary metal, transportation equipment, petroleum & coal products, appliances & components, textile, apparel, leather & footwear, furniture & related products.
Also, electrical equipment, food, beverage & tobacco products and fabricated metal products also made the list.
The remaining four sub-sectors which declined in the order included nonmetallic mineral products, cement, chemical & pharmaceutical products and printing & related support activities.
“Composite PMI above 50 points indicates that the manufacturing/non-manufacturing economy is generally expanding.
“50 points indicate no change and below 50 points indicates that it is generally declining,’’ the data showed.
Analysts say with the rising manufacturing status, added to the forex intervention drive of the apex bank, exchange rate convergence of the CBN may e a reality before the end of the year and that will indicate total exit from recession.
