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Wednesday,
March 25, 2020 /08:27 AM / By CBN / Header Image
Credit: CBN
Introduction
The March 2020 PMI survey was conducted by the
Statistics Department of the Central Bank of Nigeria during the period March
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 subsectorsreporting 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 February stood at 51.1 index points,
indicating expansion in the manufacturing sector for the thirty-sixth
consecutive month (Fig. 2 and Table 1). The index grew at a slower rate when
compared to the index in February. Of the 14 surveyed subsectors, 7 reported
growth (above 50% threshold) in the review month in the following order:
transportation equipment; petroleum & coal products; furniture &
related products; food, beverage & tobacco products; cement; fabricated metal
products and plastics & rubber products. However, electrical equipment;
primary metal; nonmetallic mineral products; paper products; textile, apparel,
leather and footwear; printing & related support activities and chemical
& pharmaceutical products subsectors all recorded declines in the review
month (Fig. 2 and Table 1)
Production Level
At 54.4
points, the production level index for the manufacturing sector grew for the
thirty-seventh consecutive month in March 2020. The index however indicated
slower growth in the current month, when compared to its level in February
2020. Seven of the 14 manufacturing subsectors recorded increased production
level, while 7 subsectors recorded declines in production (Fig. 3 and Table 2).
New Orders
At 52.3
points, the new orders index grew for the thirty-sixth consecutive month,
indicating increases in new orders in March 2020. The index grew at a slower
rate, when compared to its level in February 2020. Five subsectors reported
growth, 2 remained unchanged while 7 recorded declines in the review month
(Fig. 4 and Table 3).
Supplier Delivery Time
The
manufacturing supplier delivery time index stood at 49.4 points in March 2020,
indicating contraction in supplier delivery time. The index recorded declines
for the first time after thirty-three consecutive months of recorded growth.
Five of the 14 subsectors recorded improved suppliers' delivery time, 4
subsectors reported no change while 5 recorded slower delivery time in March
2020 (Fig. 5 and Table 4).
Employment Level
The
employment level index for March 2020 stood at 47.1 points, indicating declines
in employment level for the first time after recorded growth for thirty-four
consecutive months. Of the 14 subsectors, 3 reported increased employment
level, 1 subsectors remain unchanged, while the remaining ten 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 first time in March
2020. At 49.4 points, the index dipped when compared to its level in February
2020. Three of the 14 subsectors recorded growth, 3 subsectors reported
unchanged inventories, while 8 subsectors reported lower raw material
inventoriesin the review month (Fig. 7 and Table 6).
Related News
1.
Manufacturing PMI Stands at 58.3% in February 2020 from
59.2% in January 2020
2.
Manufacturing PMI Stands at 59.2% in January 2020 from
60.8% in December 2019
3.
Manufacturing PMI Stands at 60.8% in December 2019 from
59.3% in November 2019
4.
Manufacturing PMI Stands at 59.3% in November 2019 from
58.2% in October 2019
5.
Manufacturing PMI Stands at 58.2% in October 2019 from
57.7% in September 2019
6.
Manufacturing PMI Stands at 57.7% in September 2019 from
57.9% in August 2019
7.
Manufacturing PMI Stands at 57.9% in August 2019 from
57.6% in July 2019
8.
Manufacturing PMI Stands at 57.8% in May 2019 from 57.7%
in April 2019
9.
Manufacturing PMI Stands at 57.4% in March 2019 From
57.1% in February 2019
10. Manufacturing PMI Stands at 57.1% in February 2019 from
58.5% in January 2019
11.
Manufacturing PMI Stands at 58.5% in January 2019 from
61.1% in December 2018