CBN’s PMI report shows growth in manufacturing

 

The Manufacturing Purchasing Managers’ Index (PMI) in the month of June stood at 57.0 index points, indicating expansion in the manufacturing sector for the 15th consecutive month, a Central Bank of Nigeria (CBN) survey has shown.

The Manufacturing and Non-Manufacturing PMI Report on businesses is based on survey responses, indicating the changes in the level of business activities in the current month compared with the preceding  month.

A composite PMI above 50 points indicates that the manufacturing/non-manufacturing economy is generally expanding, 50 points indicates no change and below 50 points indicates that it is generally contracting.

The CBN report released at the weekend, showed that the index grew  at  a faster rate  in June when  compared  to the  index in  the  previous  month.  “Of  the 14 subsectors surveyed,  10 reported growth in the review month in the following order: paper  products; furniture  &  related products; printing  &  related  support activities; food,  beverage  &  tobacco products; plastics & rubber products; electrical equipment; textile, apparel, leather & footwear; chemical & pharmaceutical products; petroleum & coal products and nonmetallic   mineral   products,” it said.

It added: “The transportation equipment; fabricated metal products; primary metal; and cement subsectors declined in the review month.”

It explained that at 59.2 points,   the production   level index for the manufacturing sector grew for  the 16th consecutive  month in June. The index indicated a faster growth in   the   current   month, when compared  to its level  in  the  preceding month.

“Ten of   the 14 manufacturing subsectors recorded increase in production level, 1 remained unchanged,    while    the    remaining 3 recorded   declines   in   production level during the   review   month. At 56.2 points, the new orders  index grew    for    the fifteenth consecutive month, indicating increase in new orders in June,” it added.

Continuing, it said eight subsectors reported growth, two remained  unchanged  while four were contracted in  the  review  month. “The manufacturing supplier delivery time index stood at 56.5 points in June, indicating slower supplier delivery time    for the thirteenth consecutive month. Eight subsectors recorded improved suppliers’ delivery  time, while six remained unchanged,” it said.

Also, the manufacturing sector inventories index grew for the fifteenth consecutive   month in June 2018.   At 57.7 points, the index grew  at a slower rate when compared  to  its  level  in the previous   month. Eleven of the 14 subsectors recorded growth, two remained  unchanged while one recorded decline in raw material inventories.

“The composite PMI for the non-manufacturing sector stood    at 57.5 points in June 2018, indicating  expansion in the non-manufacturing PMI for the fourteenth consecutive    month. The  index  grew  at  a faster  rate when  compared  to  that  in May. Fourteen of the 17 subsectors recorded growth in the following order: repair, maintenance/washing of motor vehicles; agriculture; information & communication; professional, scientific, & technical services; finance and insurance; utilities; water  supply, sewage & waste  management; health  care  &  social  assistance; real  estate  rental  & leasing; electricity,  gas,  steam  &  air  conditioning  supply; wholesale/retail  trade; construction; management of companies; and transportation and warehousing,” it said.

The arts,   entertainment & recreation subsector remained unchanged, while   the accommodation & food   services; and educational services subsectors recorded contraction in the review period.

 

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