7 manufacturing groups enjoy boost in Q4 – MAN DG
The MCCI also revealed that confidence indices of three Sectoral Groups contracted.
Mr Segun Ajayi-Kadir, Director-General, Manufacturers Association of Nigeria (MAN) says seven manufacturing sectoral groups showed improvements in confidence levels in the fourth quarter of 2024.
He made the assertion on Monday in Lagos via the Manufacturers CEO Confidence Index (MCCI).
BRANDECONOMY reports that the MCCI is a barometer used to aggregate the views of about 400 Chief Executive Officers (CEOs) of manufacturing companies on changes in the economy.
The standard diffusion factors considered in the MCCI include current and business condition in the next three months, current employment condition and the next three months and productivity levels.
Ajayi-Kadir said the sectoral breakdown of the MCCI also revealed that confidence indices of three Sectoral Groups contracted.
According to him, some manufacturing groups such as basic metal, iron and steel, electrical and electronics, and non-metallic were the three sectoral groups that recorded diminished confidence indices.
He said the delay in the take-off of the ajaokuta steel company and the aluminum smelter company rendered operators in the iron and steel sectoral group highly dependent on the importation.
He noted that the increasing activities of importers of substandard wires and cables had particularly undermined the operations of genuine local manufacturers within the electrical and electronics group.
“The seven sectoral groups that recorded higher confidence level in Q4 2024 include pulp, paper, paper product, printing, publishing and packaging, domestic/industrial plastic and rubber.
“Others are wood and wood products, chemicals and pharmaceuticals, food, beverages and tobacco, textile, apparel and footwear and motor vehicle and miscellaneous assembly.
“The confidence index of pulp, paper group moved up by 1.4 points from 51.5 points in Q3 2024 to 52.9 points in Q4 2024 while operators in the domestic/ industrial plastic and rubber experienced an increase of 3.3 points from 48 points in Q3 2024 to 51.3 points in Q4 2024,” he said.
The MAN DG noted that during the yuletide, operators highly benefitted from the boom in tourism and entertainment sectors.
He said the confidence index of the textile, apparel and footwear sectoral group moved up from 44 points in Q3 2024 to 46.8 points in Q4 2024 due to surging demand and plans of Federal Government to revive moribund cotton industries.
“However, the confidence index of the group remained below the 50-point benchmark due to the persistent smuggling of foreign materials, heavy influx of imported textile products and low patronage by ministries, departments and agencies,” he said.
Ajayi-Kadir revealed that in spite of the prevailing macroeconomic and operational challenges, manufacturing CEOs remained resilient as revealed by the tepid rise of 0.5 point in the MCCI.
He said it went from 50.2 points in Q3 2024 to 50.7 points in Q4 2024, translating to a moderate improvement in the aggregate MCCI since Q1 2024.
