Employment level index for Sept. 2020 stood at 44.1 points —CBN

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By Joshua lekwachi, Abuja

The Central Bank Of Nigeria (CBN) has disclosed that the Employment level index for September 2020 stood at 44.1 points, which indicates contraction in Employment level for the sixth consecutive month.

The Purchasing Managers Index (PMI) survey report for September 2020 by CBN said, “Of the 14 subsectors, two subsectors recorded growth in employment, three subsectors recorded same level of employment while the remaining nine subsectors recorded lower employment level in the review month.”

The apex bank explained the September 2020 PMI survey was conducted by the statistics department of the bank during the period of September 7-11, 2020.

The respondents were purchasing and supply executives of manufacturing and non-manufacturing organizations in all 36 states in Nigeria and the federal capital territory.

According to the report, the bank makes no representation regarding the individual companies, other than the information they have provided.

However, the manufacturing PMI for the month of September stood at 46.9 index points, indicating contraction in the manufacturing sector for the 14th time.

The PMI survey stated that, “14 subsectors surveyed, four  subjects reported expansion above 50per cent threshold in the review month in the following order; Electrical equipment, transportation equipment, cement and Nonmetallic mineral products.

“The remaining subsectors reported contractions in the following order; petroleum and coal products, primary metal, furniture and related products, printing and related support activities, food, beverage and tobacco products, textile ,apparel, leather and footwear, chemical and pharmaceutical products, fabricated metal products and plastics and rubber products while paper product subsector was stable.”

The survey explained that,

“At 47.3 points, the production level index for the manufacturing sector indicated contraction in September 2020 for the fifth consecutive month.

“Of the 14 subsectors surveyed, five subsectors recorded increased production level, one subsector reported same level of production while eight subsectors recorded declines in production in September 2020.

“The manufacturing supplies delivery time index stood at 53.5 points in September 2020,indicating faster supplier delivery time for the fifth time. Six of the 14 subsectors recorded improved suppliers delivery time,5 subsectors reported same level while 3 subsectors recorded slower delivery time.”

Accordingly, the manufacturing section inventories index contracted for the sixth consecutive time. At 43.0 points, the index declined in the review month and four of the 14 subsectors recorded growth in inventories, while the remaining 10 subsectors recorded lower raw material inventories in the review month.

Surprisingly, the non-manufacturing sector PMI stood at 41.9 points in September 2020, indicating contraction in non-manufacturing PMI for the sixth consecutive month and of the 17 subsectors surveyed.

The survey said, “Three subsectors reported growth in the following order; water supply,sewage and water management, arts, entertainment and recreation and professional, scientific and technical services while the remaining 14 subsectors reported declines in the following order;Management of companies,repair, maintenance/washing of motor vehicle,agriculture,finance and insurance,electricity, gas ,steam and air conditioning supply, accommodation and food services, information and communication, health care and social assistance, real estate,rental and leasing, educational services, wholesale trade, transportation, warehousing, utilities and construction.

“The business activity index declined for the fifth consecutive month at 43.7 points indicating contraction in non-manufacturing business activity in September 2020. Three out of the 17 subsectors reported growth in business activities above 50per cent threshold in the review month, while the remaining 14 subsectors recorded decline in business activity in the review month.

“New order was reported to have declined for the sixth time at 39.5 points and two of the 17 subsectors reported growth in new order above 50%threshold in the review month, one sector reported same level of new order while the remaining 14 subsectors recorded decline in new orders in the review month.”