…As more Nigerians secure jobs

By Omodele Adigun

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The Central Bank of Nigeria (CBN), has provided evidence of gradual exit of the nation from recession as its Purchasing Managers’ Index (PMI) report for May shows expansion in the manufacturing sector for the second consecutive month just as employment level also  inched up after 26 consecutive months of contraction.
According to the apex bank, the Manufacturing PMI stood at 52.5 index points in May, indicating expansion, while employment level index in May stood at 50.7 points. The production level index for manufacturing sector also expanded for the third consecutive month. “The index at 58.7 points indicated an increase in production at a faster rate, when compared to the 58.5 points in the previous month. New orders index stood at 50.5 points, indicating a faster growth in new orders for the second consecutive month,” the report adds.
The Manufacturing and Non-Manufacturing PMI Report on businesses is based on data compiled from purchasing and supply executives.
Survey responses indicate whether there is change or no change in the level of business activities in the current month compared with the previous month. The composite PMI for non-manufacturing sector is computed  from four diffusion indices: business activity, new orders, employment level and raw materials inventory.
Giving a breakdown, the survey states that on Manufacturing PMI, “10 of the 16 sub-sectors reported growth in the review month in the following order: primary metal; petroleum & coal products; plastics & rubber products; paper products; electrical equipment; appliances & components; textile, apparel, leather & footwear; cement; food, beverage & tobacco products and chemical & pharmaceutical products.
The remaining 6 sub-sectors declined in the order: transportation equipment; nonmetallic mineral products; fabricated metal products; printing & related support activities; furniture & related products and computer & electronic products. However, out of the 16 sub-sectors, seven recorded growth in employment.
“As for the production level index for manufacturing sector, the  index at 58.7 points indicated an increase in production at a faster rate, when compared to the 58.5 points in the previous month. Fifteen manufacturing sub-sectors recorded increase in production level during the review month
“New orders index for the month of May stood at 50.5 points, indicating a faster growth in new orders for the second consecutive month. Eight sub-sectors reported growth in new orders.