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CBN’s sustained FX intervention aiding manufacturing sector growth-Analysts

…As PMI closes July at 57.1 index points
Following the closure of the Manufacturing Purchasing Managers’ Index (PMI) in the month of August at 57.1 Index points from 56.8 index points in July, Finance analysts, haves said that the Central Bank of Nigeria (CBN) sustained foreign exchange intervention is the growth in the manufacturing sector.

The PMI growth in August indicated expansion in the manufacturing sector for the 17th consecutive months, the apex bank explained.

The CBN had reported 57 index points in June and 56.6 index points in May.

The Manufacturing and Non-Manufacturing PMI Report on businesses is based on survey responses, indicating the changes in the level of business activities in the current month compared with the preceding month

The apex bank PMI statistics report on manufacturing stated that, “The Manufacturing PMI in the month of August stood at 57.1 index points, indicating expansion in the manufacturing sector for the seventeenth consecutive month. The index however grew at a faster rate when compared to the index in the previous month.

“Of the 14 subsectors surveyed, 13 reported growth in the review month in the following order: electrical equipment; nonmetallic mineral products; cement; furniture & related products; plastics & rubber products; textile, apparel, leather & footwear; petroleum & coal products;

chemical & pharmaceutical products; paper products; fabricated metal products; printing & related support activities; food, beverage & tobacco products and primary metal. The transportation equipment subsector declined in the review month.

The survey further stated that, “The composite PMI for the nonmanufacturing sector stood at 58.0 points in August 2018, indicating expansion in the Nonmanufacturing PMI for the 16th consecutive month.

“The index grew at a faster rate when compared to that in July 2018. 14th of the 17 subsectors recorded growth in the following order: agriculture; repair, maintenance/washing of motor vehicles; information & communication; water supply, sewage & waste management; educational services;

wholesale/retail trade; finance & insurance; arts, entertainment & recreation; real estate rental & leasing; health care & social assistance; transportation & warehousing; management of companies; accommodation & food services; electricity, gas, steam & air conditioning supply.

“The public administration subsector remained unchanged, while utilities; professional, scientific & technical services and construction subsectors recorded contractions in the review period.”

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