CBN Circulars & Publications | |
CBN Circulars & Publications | |
1104 VIEWS | |
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PROSHARE | |
PROSHARE |
Thursday, June 25, 2020 / 10:30 AM / By CBN / Header Image
Credit: CBN
Introduction
The June 2020 PMI survey
was conducted by the Statistics Department of the Central Bank of Nigeria
during the period June 8-12, 2020. The respondents were purchasing and supply
executives of manufacturing and non-manufacturing companies in the 36 states in
Nigeria and the Federal Capital Territory (FCT). The Bank makes no
representation regarding the individual companies, other than the information
they have provided. The data contained herein further provides input for policy
decisions.
Data and Method of Presentation
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. For each of the indicators
measured, this report shows the diffusion index of the responses. The diffusion
index is computed as the percentage of responses with positive change plus half
of the percentage of those reporting no change, except for supplier delivery
time, which is computed as the percentage of responses with negative change
plus half of the percentage of those reporting no change. The composite PMI for
the manufacturing sector is computed as the weighted average of five diffusion
indices, namely: production level, level of new orders, suppliers' delivery
time, employment level and raw materials inventory/work in progress, with
assigned weights of 25%, 30%, 15%, 10% and 20%, respectively. The composite PMI
for the non-manufacturing sector is computed from four diffusion indices,
namely: business activity, level of new orders, employment level and raw
materials inventory, with equal weights of 25% each. 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 subsectors reporting growth are listed in the
order of highest to lowest growth, while that reporting contraction are listed
in the order of the highest to the lowest contraction.
Manufacturing May 2020 PMI
The Manufacturing PMI in
the month of June 2020 stood at 41.1, indicating contraction in the
manufacturing sector for the second time. (Fig. 2 and Table 1). Of the 14
surveyed subsectors, 5 subsectors reported growth (above 50% threshold) in the
review month in the following order: electrical equipment; cement; petroleum
& coal products; transportation equipment and paper products. However, the
remaining 9 subsectors reported declines in the following order printing &
related support activities; textile, apparel, leather & footwear; primary
metal; plastics & rubber products; nonmetallic mineral products; fabricated
metal products; food, beverage & tobacco products; chemical &
pharmaceutical products and furniture & related products.
In June 2020, supplier
delivery time grew, while production level, new orders, employment level and
raw materials inventories declined.
Production
Level
At 36.6 points, the
production level index for the manufacturing sector declined in June 2020 for
the second consecutive month. Three subsectors recorded increased production
level, 2 remained unchanged, while 9 subsectors recorded declines in production
level in June 2020 (Fig. 3 and Table 2).
New
Orders
At 36.4 points, the new
orders index further declined from the level recorded in May 2020, indicating
declines in new orders in June 2020. Five subsectors reported growth, while 9
recorded declines in the review month (Fig. 4 and Table 3).
Supplier
Delivery Time
The manufacturing supplier
delivery time index stood at 60.9 points in June 2020, indicating growth in
supplier delivery time index for the second time. The index recorded growth
from the contraction level recorded in March 2020. Nine of the 14 subsectors recorded
improved suppliers' delivery time, 3 subsectors reported no change while 2
recorded slower delivery time in June 2020 (Fig. 5 and Table 4).
Employment
Level
The employment level index
in June 2020 stood at 38.8 points, indicating decline in employment level index
for the third month. Of the 14 subsectors, 2 subsectors recorded increases in
employment, one subsector remained unchanged, while the remaining 11 subsectors
recorded lower employment level in the review month (Fig. 6 and Table 5).
Raw
material Inventories
The manufacturing sector
inventories index showed contraction for the third time in June 2020. At 41.0
points, the raw materials inventories index is contracting at a slower rate
when compared to its level in May 2020. Three of the 14 subsectors recorded reported
growth in inventories, 1 remained unchanged, while the remaining 10 subsectors
recorded lower raw material inventories in the review month (Fig. 7 and Table
6).
Related News
1.
Manufacturing
PMI Stands at 42.4% in May 2020 from 51.1% in March 2020
2.
Manufacturing
PMI Stands at 51.1% in March 2020 from 58.3% in February 2020
3.
Manufacturing
PMI Stands at 58.3% in February 2020 from 59.2% in January 2020
4.
Manufacturing
PMI Stands at 59.2% in January 2020 from 60.8% in December 2019
5.
Manufacturing
PMI Stands at 60.8% in December 2019 from 59.3% in November 2019
6.
Manufacturing
PMI Stands at 59.3% in November 2019 from 58.2% in October 2019
7.
Manufacturing
PMI Stands at 58.2% in October 2019 from 57.7% in September 2019
8.
Manufacturing
PMI Stands at 57.7% in September 2019 from 57.9% in August 2019
9.
Manufacturing
PMI Stands at 57.9% in August 2019 from 57.6% in July 2019
10. Manufacturing
PMI Stands at 57.8% in May 2019 from 57.7% in April 2019
11.
Manufacturing
PMI Stands at 57.4% in March 2019 From 57.1% in February 2019
12. Manufacturing
PMI Stands at 57.1% in February 2019 from 58.5% in January 2019
13. Manufacturing PMI Stands at 58.5% in January 2019 from 61.1% in December 2018