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Economy contracted in May, says CBN report

Economy contracted in May, says CBN report

Godwin Emefiele, CBN Governor

Economic activities in manufacturing, production, new others and other indices contracted in May after recording at least 36 months of consecutive growth.

The statistics department of the Central Bank of Nigeria disclosed this in its Purchasing Managers Index survey report for the month of May 2020.

It stated that the Manufacturing PMI in May stood at 42.4 index points, indicating contraction in the manufacturing sector for the first time after recording expansion for 36 consecutive months.

Of the 14 surveyed subsectors, only the electrical equipment sector reported growth (above 50 per cent threshold) in the review month, while the remaining 13 subsectors reported declines in the following order of cement; petroleum & coal products; printing & related support activities.

Others are furniture & related products; textile, apparel, leather and footwear; paper products; fabricated metal products; food, beverage & tobacco products; chemical & pharmaceutical products; transportation equipment; plastics & rubber products; non-metallic mineral products; appliances and components and primary metal.

At 44.5 points, the CBN stated that production level index for the manufacturing sector declined in May 2020 after 37 consecutive months of recorded growth.

One subsector recorded increased production level; four remained unchanged, while nine subsectors recorded declines in production in May 2020.

At 42.8 points, the new orders index declined after 36 consecutive months of growth, indicating declines in new orders in May 2020.

Three subsectors reported growth; two remained unchanged while nine recorded declines in the review month.

The manufacturing supplier delivery time index stood at 65.2 points in May 2020, indicating growth in supplier delivery time. The index recorded growth from the contraction level of March 2020.

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