Thursday, November 19, 2020 / 9:35
AM / By CBN / Header Image Credit: CBN
The November 2020 PMI survey was conducted by the Statistics Department of the Central Bank of Nigeria during the period November 9-13, 2020. 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 that reporting contraction are listed in the order of the highest to the lowest contraction.
Manufacturing November 2020 PMI
The Manufacturing PMI in the month of November stood at 50.2 index points, indicating recovery from contraction in the manufacturing sector recorded since May 2020 (Fig. 2 and Table 1). Of the 14 subsectors surveyed, 8 subsectors reported expansion (above 50% threshold) in the review month in the following order: Transportation equipment, Nonmetallic mineral products, Furniture & related products, Cement, Textile, apparel, leather & footwear, Plastics & rubber products, Food, beverage & tobacco products and Printing & related support activities. The remaining 6 subsectors reported contractions in the following order: Electrical equipment, Petroleum & coal products, Chemical & pharmaceutical products, Primary metal, Paper products and Fabricated metal products.
In November 2020, suppliers' delivery time was faster, new orders and production level increased while employment level and raw materials inventories contracted.
The November 2020 production level index for the manufacturing sector stood at 51.7 points, indicating recovery from the contraction recorded since May 2020. Of the 14 subsectors surveyed, 7 subsectors recorded expanding production levels, 3 subsectors reported stationary levels of production, while 4 subsectors still recording contraction in production level (Fig. 3 and Table 2).
The new orders index marginally expanded for the second time in the month of November. The index stood at 50.5 points in November 2020 with seven subsectors reporting expansion in new orders. Three subsectors remained stationary while the remaining 4 subsectors recorded contraction in the review month (Fig. 4 and Table 3).
Supplier Delivery Time
The manufacturing supplier delivery time index stood at 52.2 points in November 2020, indicating a faster delivery time for the seventh month. Four of the 14 subsectors recorded improved suppliers' delivery time, 3 subsectors remained stationary, while 7 subsectors recorded slower delivery time (Fig. 5 and Table 4).
The employment level index for November 2020 stood at 47.3 points, indicating contraction in employment level for the eighth consecutive months. Of the 14 subsectors, 5 subsectors recorded growth in employment level while 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 eighth time in November 2020. At 48.5 points, the index indicates a slowing contraction in raw materials inventories as some manufacturers begin to have access to raw materials. Two of the 14 subsectors recorded growth in inventories, while the remaining 12 subsectors recorded lower raw material inventories in the review month (Fig. 7 and Table 6).