CBN Circulars & Publications | |
CBN Circulars & Publications | |
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Thursday, August 27, 2020 / 5:16 PM / By CBN / Header Image Credit: CBN
Introduction
The August 2020 PMI survey was conducted by the Statistics
Department of the Central Bank of Nigeria during the period August 10-14, 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
August 2020 PMI
The Manufacturing PMI in the month of August stood at
48.5 index points, indicating contraction in the manufacturing sector for the
fourth consecutive months(Fig. 2 and Table 1). However, of the 14 subsectors
surveyed, 6 subsectors reported expansion (above 50% threshold) in the review
month in the following order: nonmetallic mineral products; cement; plastics
& rubber products; transportation equipment; chemical & pharmaceutical
products and textile, apparel, leather & footwear. The remaining 8
subsectors reported contraction in the following order: printing & related
support activities; electrical equipment; petroleum & coal products;
primary metal; furniture & related products; paper products; food, beverage
& tobacco products; and fabricated metal products.
In August 2020, supplier delivery time grew, while
Production level, new orders, employment level and raw materials inventories
contracted.
Production Level
At 49.2 points, the production level index for the
manufacturing sector showed contraction in August 2020 and for the fourth
consecutive months. Of the 14 subsectors surveyed, 5 subsectors recorded
expansion in production level, 3 subsectors reported same level of production,
while 6 subsectors recorded contraction in production in August 2020 (Fig. 3
and Table 2).
New Orders
At 49.2 points, the new orders index shows slower
contraction in August 2020. Six subsectors reported expansion in new orders, 2
subsectors maintained same level, while 6 recorded contraction in the review
month (Fig. 4 and Table 3).
Supplier Delivery Time
The manufacturing supplier delivery time index stood
at 53.0 points in August 2020, indicating faster supplier delivery time for the
fourth time. Seven of the 14 subsectors recorded improved suppliers’ delivery
time, 2 subsectors reported same level, while 5 sectors recorded slower
delivery time in August 2020 (Fig. 5 and Table 4).
Employment Level
The employment level index for August 2020 stood at
44.6 points, indicating contraction in employment level for the fifth
consecutive months. Of the 14 subsectors, 2 subsectors recorded expansion in
employment level in the review month; 3 subsectors recorded same level of
employment, while the remaining 9 subsectors recorded lower employment level in
the review month (Fig. 6 and Table 5).
Raw material Inventories
The manufacturing sector inventories index contracted
for the fifth time in August 2020. At 46.1 points, the index declined in the
review month. Four of the 14 subsectors recorded growth in inventories, the
petroleum and coal subsector reported same level of inventories, while the
remaining 9 subsectors recorded lower raw material inventories in the review
month (Fig. 7 and Table 6).
Related News
1. Manufacturing PMI Stands at 44.9% in July 2020 from
41.1% in June 2020
2. Manufacturing PMI Stands at 41.1% in June 2020 from 42.4%
in May 2020
3. Manufacturing PMI Stands at 42.4% in May 2020 from 51.1%
in March 2020
4. Manufacturing PMI Stands at 51.1% in March 2020 from
58.3% in February 2020
5. Manufacturing PMI Stands at 58.3% in February 2020 from
59.2% in January 2020
6. Manufacturing PMI Stands at 59.2% in January 2020 from
60.8% in December 2019
7. Manufacturing PMI Stands at 60.8% in December 2019 from
59.3% in November 2019
8. Manufacturing PMI Stands at 59.3% in November 2019 from
58.2% in October 2019
9. Manufacturing PMI Stands at 58.2% in October 2019 from
57.7% in September 2019
10. Manufacturing PMI Stands at 57.7% in September 2019 from
57.9% in August 2019
11. Manufacturing PMI Stands at 57.9% in August 2019 from
57.6% in July 2019
12. Manufacturing PMI Stands at 57.8% in May 2019 from 57.7%
in April 2019
13. Manufacturing PMI Stands at 57.4% in March 2019 From
57.1% in February 2019
14. Manufacturing PMI Stands at 57.1% in February 2019 from
58.5% in January 2019
15. Manufacturing PMI Stands at 58.5% in January 2019 from
61.1% in December 2018