Stories by Kayode Tokede
The latest report from the Central Bank of Nigeria (CBN) has indicated that the Manufacturing Purchasing Managers’ Index (PMI) stood at 57 index points in June from 56.6 index points in May.
The expansion in June 2018 translates to 15th consecutive month growth in PMI, monitored by the statistics department of the apex bank.
CBN noted that the PMI index however grew at a faster rate when compared to the index in the previous month that closed at 56.6 index points.
The PMI report of CBN measures non-manufacturing and manufacturing sector. The manufacturing sector comprises production level, new orders, supplier delivery time, employment level and raw material inventories.
According to CBN, “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 amd tobacco products; plastics and rubber products; electrical equipment; textile, apparel, leather & footwear; chemical & pharmaceutical products; petroleum & coal products and nonmetallic mineral products.
“The transportation equipment; fabricated metal products; primary metal; and cement subsectors declined in the review month.”
On production level, the survey conducted by CBN revealed that “At 59.2 points, the production level index for the manufacturing sector grew for the 16th consecutive month in June 2018. The index indicated a faster growth in the current month, when compared to its level in the preceding month. 10 of the 14 manufacturing subsectors recorded increase in production level, one remained unchanged, while the remaining three recorded declines in production level during the review month.”
New orders according to CBN grew to 56.2 points, 15thconsecutive month increase that indicated growth in new orders in June 2018.
The survey by CBN stated that “Eight subsectors reported growth, two remained unchanged while four contracted in the review month.”
“The manufacturing supplier delivery time index stood at 56.5 points in June 2018, indicating slower supplier delivery time for the thirteenth consecutive month. Eight subsectors recorded improved suppliers’ delivery time, while six remained unchanged,” the CBN explained on Supplier Delivery Time.
“The employment level index in June 2018 stood at 55.4 points, indicating growth in employment level for the 14th consecutive month. Of the 14 subsectors, seven reported increased employment level, four remained unchanged while three reported reduced employment level in the review month.”
In addition, “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.”
However, the composite PMI for the nonmanufacturing sector stood at 57.5 points in June 2018, indicating expansion in the Nonmanufacturing PMI for the 14th consecutive month.
“The index grew at a faster rate when compared to that in May 2018. 14 of the 17 subsectors recorded growth in the following order: repair, maintenance/ washing of motor vehicles; agriculture; information & communication; professional, scientific, & technical services; finance & 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 & warehousing.
“The arts, entertainment & recreation subsector remained unchanged, while the accommodation & food services; and educational services subsectors recorded contraction in the review period.”