MAN attributes decline capacity utilization in real sector to low macroeconomic ambience

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The management of the manufacturers Association of Nigeria (MAN) has stated that the decline in manufacturing capacity utilization in the period under review can be ascribed to the general low macroeconomic ambience in the country.

 

In the executive summary statement released to the media for six months  (From January through to June 2018) showed capacity utilization in the manufacturing sector stood at 54.6 percent in the First Half of 2018, indicating 0.43 and 4.64 percentage points decline from 55.03 percent recorded in the same half of 2017 and 59.24 percent of the preceding half.

Analysis of sectoral group performance shows that capacity utilization declined in the entire groups with the exception of Motor Vehicle and Miscellaneous Assembly in the first half of 2018.

 

The records showed capacity utilization in Food, Beverage and Tobacco group stood at 58.88 percent, representing 5.1 and 3.62 percentage points decline from 63.98 percent recorded in the same half of 2017 and 62.5 percent recorded in the preceding half.

 

The capacity utilization in Textile Apparel & Footwear group also declined to 50.17 percent in the first half of 2018 by 2.81 percentage point from 52.98 percent recorded in the corresponding half of 2017. While the capacity utilization in the group fell by 7.03 percentage points from 57.2 percent recording in the preceding half. That of capacity  utilization in Motor Vehicle and Miscellaneous Assembly group however increased to 56.38 percent in the period under review by 11.05 and 2.88 percentage points from 45.33 percent of the same half of 2017 and 53.5 percent of the preceding half respectively.

 

Across industrial zones, there were similar marginal declines in capacity utilization as the case for the sectoral group in the period under review except Anambra/Enugu zone which recorded marginal increase.

 

The records showed that in Ikeja industrial zone (the manufacturing hub of Nigeria) capacity utilization declined by 4.42 percentage point in the first half of 2018 from 59.6 percent recorded in the same half of 2017 and by 8.02 percentage points from 63.2 percent of the preceding half.

Followed by Ogun zone (the investment hub of the country), capacity utilization  declined by 6.54  percentage point  in the first half of 2018 from 68.7 percent of the  preceding half, but  showed an increase of 5.86 percentage point from 56.3 percent recorded in the same half of 2017.

 

Also in declined was Apapa zone, where capacity utilization declined by 3.9 and 13.3 percentage points   from 61.3 percent of the same half in 2017 and 70.7 percent of the preceding half respectively.

 

However, capacity utilization in Anambra/Enugu zone showed  increase of 0.83 and 10.83 percentage points  from 51.3 percent and 41.3 percent of  same half in 2017 and the preceding half respectively.

 


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