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 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.