CBN Circulars & Publications | |
CBN Circulars & Publications | |
1294 VIEWS | |
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Monday, October 28, 2019 / 09:48 AM / By CBN / Header Image Credit: CBN
Introduction
The October 2019 PMI survey was conducted by the
Statistics Department of the Central Bank of Nigeria during the period October
7-11, 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 October stood at 58.2 index points, indicating expansion in the manufacturing sector for the thirty-first consecutive month (Fig. 2 and Table 1). The index grew at a faster rate when compared to the index in September. Thirteen of the 14 surveyed subsectors reported growth in the review month in the following order: petroleum & coal products; cement; electrical equipment; furniture & related products; fabricated metal products; printing & related support activities; textile, apparel, leather & footwear; food, beverage & tobacco products; nonmetallic mineral products; plastics & rubber products; primary metal; chemical & pharmaceutical products; and transportation equipment. The paper products subsector recorded decline in the review period (Fig. 2 and Table 1).
Production Level
At 59.3 points, the production level index for
manufacturing sector grew for the thirty-second consecutive month in October
2019. The index indicated a faster growth in the current month, when compared
to its level in September 2019. Eleven of the 14 manufacturing subsectors
recorded increased production level, while 3 recorded decline (Fig. 3 and Table
2).
New Orders
At 57.9 points, the new orders index grew for the
thirty-first consecutive month, indicating increase in new orders in October
2019. The index grew at a faster rate, when compared to its level in September
2019. Nine subsectors reported growth, 2 remained unchanged, while 3 contracted
in the review month (Fig. 4 and Table 3).
Supplier Delivery Time
The manufacturing supplier delivery time index stood
at 58.6 points in October 2019, indicating faster supplier delivery time. The
index has recorded growth for twenty-ninth consecutive months. Nine of the 14
subsectors recorded improved suppliers' delivery time, while 5 remained
unchanged in the review period (Fig. 5 and Table 4).
Employment Level
The employment level index for October 2019 stood at
56.8 points, indicating growth in employment level for the thirtieth consecutive
month. Of the 14 subsectors, 11 reported increased employment level, 1 reported
unchanged employment level while 2 reported decreased employment in the review
month (Fig. 6 and Table 5).
Raw material Inventories
The Manufacturing sector inventories index grew for
the thirty-first consecutive month in October 2019. At 58.6 points, the index
grew at a faster rate when compared to its level in September 2019. Ten of the
14 subsectors recorded growth, 2 remained unchanged, while 2 reported declined
raw material inventories in the review month (Fig. 7 and Table 6).
Related News
1.
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