The aggregate Manufacturers CEO’s Confidence Index (MCCI) for the second quarter of 2019 stood at 50.9 points; thus, indicating a contraction of 0.4points from 51.3 points recorded in the first quarter of the year.In the report, MCCI’s second quarter is slightly above the 50 points benchmarks of good performance, it depicts a weaker manufacturing performance and shows that manufacturers’ confidence in the economy is waning. The weak performance is attributable to the persistence of numerous operating challenges limiting manufacturing activities.
According to the report, the indexes of Current Business Condition in the second quarter dropped to 43 points from the 45.5 points recorded in the first quarter; Current Employment Condition which stood at 38 points in the first quarter of the year also weakened to 35 points in the second quarter, while production expectation in the next 3 months decelerated marginally from 65.5 points recorded in the first quarter to 64.5 points in the second quarter of the year.
However, the report noted that indexes of ‘Business Condition for the next ‘3 months’ improved from 54.5 points recorded in the first quarter to 59 points in the second quarter of the year. ‘Employment Condition for the next ‘3’ months’ also strengthened marginally from 52.5 points of the first quarter to 53points recorded in the second quarter of the year.
MAN report disclosed that the improvement in ‘Business Condition’ and ‘Employment Condition’ for the next ‘3’ months’ expressed the degree of hope and intensity of the level of expectation of CEOs of manufacturing concerns that Government would do the needful to make manufacturing operating environment friendlier before year end.
“The Second quarter of 2019 MCCI with a composite index of 50.9 points presented a weaker manufacturers’ confidence on the economy when compared with the first quarter performance of 51.3 points; thus, indicating a shrinking manufacturing activity. The current MCCI revealed that more sub-sectors and industrial zones performed below the 50-point threshold as against what obtained in the first quarter. This therefore demands that Government should, as a matter of urgency, address the challenges responsible for the observed downward trend.