Nigeria’s Purchasing Manufacturing Index (PMI) recorded a slower expansion in the month of June 2019 when compared against the expansion in May according to the PMI’s monthly report published by the Central Bank of Nigeria (CBN).
Although the expansion is the twenty-seventh consecutive one, the gradual slow progress of growth has been attributed to sluggish economic activities.
The manufacturing PMI emerged lower at 57.4 in June as against 57.8 in May, while the non-manufacturing PMI came in lower at 58.6 points compared with 58.9 points recorded in previous month.
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According to a research report by United Capital analysts, such occurrence is an indication of a slower expansion in the level of economic activities, which can be linked to delay in the appointment of cabinet members.
“The recent deceleration in the leading indicator reflects the continuation of the sluggish growth in the broader economy. This could also be linked to the uncertainty that trails the delay in the appointment of cabinet members and attendant structural reforms required to boost economic activities,” explained economists at United Capital.
The economists also noted that in the past two years, both manufacturing and non-manufacturing PMIs have remained in the expansionary region i.e., greater than 50 points, correlating fairly with the marginal improvement that trailed the country’s exit from recession.
The report surveyed 14 sub-sectors, among which 12 reported growth in June topped by transportation equipment, petroleum & coal products, cement, chemical & pharmaceutical products, electrical equipment, food, beverage & tobacco products, printing & related support activities.