CBN Circulars & Publications | |
CBN Circulars & Publications | |
1683 VIEWS | |
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Monday, August 26, 2019 /6:00PM / CBN
Introduction
The August 2019 PMI survey was conducted by the
Statistics Department of the Central Bank of Nigeria during the period August
13-21, 2019. The respondents were purchasing and supply executives of
manufacturing and non-manufacturing organizations in all 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 those reporting contraction are listed in the order of
the highest to the lowest contraction.
Manufacturing PMI Report
The Manufacturing PMI in the month of August stood
at 57.9 index points, indicating expansion in the manufacturing sector for the
twenty-ninth consecutive month (Fig. 2 and Table 1). The index grew at a faster
rate when compared to the index in July. Of the 14 subsectors surveyed, 13
reported growth in the review month in the following order: cement; petroleum
& coal products; food, beverage & tobacco products; transportation
equipment; printing & related support activities; chemical &
pharmaceutical products; furniture & related ; products; fabricated metal
products; nonmetallic mineral products; electrical equipment; textile, apparel,
leather & footwear; plastics & rubber products; and primary metal. The
paper products subsector recorded decline in the review period (Fig. 2 and
Table 1).
Production Level
At 58.7 points, the production level index for the
manufacturing sector grew for the thirtieth consecutive month in August 2019.
The index indicated a slower growth in the current month, when compared to its
level in July 2019. Eight of the 14 manufacturing subsectors recorded increased
production level, 3 remained unchanged, while 3 recorded decline (Fig. 3 and
Table 2).
New Orders
At 57.1 points, the new orders index grew for the
twenty-ninth consecutive month, indicating increase in new orders in August
2019. The index grew at a slower rate, when compared to its level in July 2019.
Nine subsectors reported growth, 4 remained unchanged, while 1 contracted in
the review month (Fig. 4 and Table 3).
Supplier Delivery Time
The manufacturing supplier delivery time index
stood at 58.3 points in August 2019, indicating faster supplier delivery time.
The index has recorded growth for twenty-seven consecutive months. Ten of the
14 subsectors recorded improved suppliers' delivery time, while 2 remained
unchanged and 2 recorded decline in the review period (Fig. 5 and Table 4).
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