The Manufacturers Association of Nigeria (MAN) use Manufacturers Confidence Index (MCCI) is an index to gauge the change in quarterly pulsation of manufacturing activities to changes in the macroeconomic ambience and Government policies. According to MAN, MCCI is therefore barometer used by Association to garner the perceptions of 400 Chief Executive Officers (CEOs) of MAN member-companies on changes in the economy.
According to perceptions of MCCI comprised of 400 Chief Executive Officers (CEOs) of MAN member-companies says index scores across sectoral groups showed that Indexes of the sectors improved in the second quarter of 2021 from what obtained in the first quarter of the year.
According to the report, of the 10 sectoral groups, 6 of them scored indexes above the 50 neutral points while the remain 4 sectors scored below this benchmark in the quarter under review.
“Among the sectors that scored above the 50 neutral points, Index for Food, Beverage and Tobacco increased to 59.3 points in the second quarter of 2021 from 51.2 points obtained in the preceding quarter. Likewise, Index for Textile, Wearing Apparel, Carpet, Leather and Leather Footwear increased to 52.4 points in the second quarter of 2021 from 48.57 points recorded in the first quarter of the year. Index for Pulp, Paper & Paper Products Printing, Publishing & Packaging (6Ps) however declined to 53.3 points in the second quarter from 54.8 points recorded in the first quarter of the year.
The report sighted index for Chemical and Pharmaceutical sector group to have increased to 58.6 points in the second quarter of the years from 55.9 points recorded in the preceding quarter just as Index for Domestic/Industrial Plastics & Rubber increased to 57.4 points in the quarter under review from 56.3 points recorded in the preceding quarter. Likewise, Index for Basic Metal, Iron & Steel, Fabricated Metal increased to 56.8 points in the quarter under review from 54.4 points recorded in the first quarter of 2021, it added.
However, the report further stated that of these sectors that scored index points less than the 50 points benchmarks, the Index Wood & Wood Products increased to 46.0 points in the second quarter of 2021 from 38.9 points recorded in the preceding quarter. Index for Non-Metallic Products sectoral group stood at 46.8 points in the quarter under review as against 42.9 points recorded in the preceding quarter.
“Similarly, Index for Electrical & Electronics group increased to 48.2 points in the second quarter of 2021 from 42.8 points recorded in the first quarter of the year.
“Also, Index for Motor Vehicle & Miscellaneous Assembly increased to 49.7 points in the second quarter of the year from 45.3 point observed in the preceding quarter. The performances of the sectors suggest significant improvement in the confidence of manufacturers in the economy.
However, the report noted that it is expected that the macroeconomic environment will continue to adjust so as to sustain and improve on the current optimism and momentum in the manufacturing sector.
In conclusion MAN said In the second quarter of 2021, the normalcy and tranquility seen in the economy in the first quarter of the year was sustained as business activities increasingly rebounded from the hangover of COVID-19 pandemic. This is corroborated by the increase in MCCI scores for the second quarter of the year to 52.9 points from 49.1 points recorded in the first quarter. The index score of 52.9 points in the quarter under review was the first it stayed above the 50-neutral point since the first quarter of 2020.
“Consequently, the index performance underpinned the improvement in the confidence of manufacturers on the economy, although much is still required to ensure that the current momentum in the economy is sustained and improved upon. Therefore, this report provided critical recommendations that addressed the various challenges of the manufacturing sector as identified by manufacturers in the quarter under review. We believe that with the ardent implementation of the recommendations, there would be significant positive change in the business operating environment in the country.
