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Thursday, November 19, 2020 / 9:35
AM / By CBN / Header Image Credit: CBN
Introduction
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.
Production Level
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).
New Orders
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).
Employment Level
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).
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