Sunday, March 01, 2020 /08:00
AM / By CBN / Header Image Credit: EcoGraphics
The February 2020 PMI survey was conducted by the Statistics Department of the Central Bank of Nigeria during the period February 10-14, 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 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 58.3 index points, indicating expansion in the manufacturing sector for the thirty-fifth consecutive month (Fig. 2 and Table 1). The index grew at a slower rate when compared to the index in January. Of the 14 surveyed subsectors, 12 reported growth (above 50% threshold) in the review month in the following order: transportation equipment; petroleum & coal products; Nonmetallic mineral products; Paper products; cement ; textile, apparel, leather & footwear; Furniture & related products; food, beverage & tobacco products; plastics & rubber products; Fabricated metal products; chemical & pharmaceutical products; plastic and rubber products and Electrical equipment. The Primary metal and Printing & related support activities subsectors recorded declines (Fig. 2 and Table 1).
At 58.9 points, the production level index for the manufacturing sector grew for the thirty-sixth consecutive month in February 2020. The index however indicated slower growth in the current month, when compared to itslevel in January 2020. Ten of the 14 manufacturing subsectors recorded increased production level, 3 remained unchanged while 1 recorded a decline (Fig. 3 and Table 2)
At 59.1 points, the new orders index grew for the thirty-fifth consecutive month, indicating increases in new orders in February 2020. The index grew at a slower rate, when compared to its level in January 2020. Eleven subsectors reported growth, while the remaining 3 recorded declines in the review month (Fig. 4 and Table 3).
Supplier Delivery Time
The manufacturing supplier delivery time index stood at 58.4 points in February 2020, indicating faster supplier delivery time. The index has recorded growth for thirty-three consecutive months. Ten of the 14 subsectors recorded improved suppliers' delivery time, while 4 subsectors reported no change in delivery time in February 2020 (Fig. 5 and Table 4).
The employment level index for February 2020 stood at 56.4 points, indicating growth in employment level for the thirty-fourth consecutive month. Of the 14 subsectors, 9 reported increased employment level, 3 subsectors remain unchanged, while the electrical equipment and printing & related support services subsector recorded lower employment level in the review month (Fig. 6 and Table 5)
Raw material Inventories
The manufacturing sector inventories index grew for the thirty-fifth consecutive month in February 2020. At 58.5 points, the index grew at a slower rate when compared to its level in January 2020. Eight of the 14 subsectors recorded growth, 5 subsectors reported unchanged inventories, while the cement subsector reported lower raw material inventories in the review month (Fig. 7 and Table 6).