CBN Circulars & Publications | |
CBN Circulars & Publications | |
3984 VIEWS | |
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Monday, April 29, 2019 12:41PM / CBN
Introduction
The April
2019 PMI survey was conducted by the Statistics Department of the Central Bank
of Nigeria during the period April 9-13, 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 April stood at 57.7 index points, indicating
expansion in the manufacturing sector for the twenty-fifth consecutive month
(Fig. 2 and Table 1). The index grew at a faster rate when compared to the
index in the previous month. Twelve of the 14 subsectors surveyed reported
growth in the review month in the following order: electrical equipment;
plastics & rubber products; cement; petroleum & coal products;
transportation equipment; food, beverage & tobacco products; nonmetallic
mineral products; chemical & pharmaceutical products; furniture &
related products; textile, apparel, leather & footwear; printing &
related support activities and fabricated metal products. The paper products
and primary metal subsectors recorded decline in the review period.
Production Level
At 58.8 points, the production level index for the manufacturing sector grew for the twenty-sixth consecutive month in April 2019. The index indicated a faster growth in the current month, when compared to its level in the month of March 2019. Eleven of the 14 manufacturing subsectors recorded increased production level, while 3 recorded decline (Fig. 3 and Table 2).
New Orders
At 57.2 points, the new orders index grew for the twenty-fifth consecutive month, indicating increase in new orders in April 2019. Ten subsectors reported growth, while 4 contracted in the review month (Fig. 4 and Table 3).
Supplier Delivery Time
The manufacturing
supplier delivery time index stood at 58.1 points in April 2019, indicating
slower supplier delivery time. The index has recorded growth for twenty-three
consecutive months. Eleven of the 14 subsectors recorded improved suppliers’
delivery time, while 1 remained unchanged and 2 recorded decline in the review
period (Fig. 5 and Table 4).
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