| CBN Circulars & Publications |    4042 VIEWS  |
| CBN Circulars & Publications | |
| 4042 VIEWS | |
 |
Tuesday, May 21, 2019 5:05PM / CBN
Introduction
The May 2019 PMI survey was conducted by the
Statistics Department of the Central Bank of Nigeria during the period May
6-10, 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 May stood at
57.8 index points, indicating expansion in the manufacturing sector for the
twenty-sixth consecutive month (Fig. 2 and Table 1). The index grew at a faster
rate when compared to the index in the previous month. Thirteen of the 14
subsectors surveyed reported growth in the review month in the following order:
transportation equipment; electrical equipment; petroleum & coal products;
paper products; cement; food, beverage & tobacco products; plastics &
rubber products; chemical & pharmaceutical products; fabricated metal
products; furniture & related products; nonmetallic mineral products;
textile, apparel, leather & footwear and printing & related support
activities. The primary metal subsector recorded decline in the review period.
Production Level
At 59.1 points, the production level index for the
manufacturing sector grew for the twenty-seventh consecutive month in May 2019.
The index indicated a faster growth in the current month, when compared to its
level in the month of April 2019. Eleven of the 14 manufacturing subsectors
recorded increased production level, while 3 recorded decline (Fig. 3 and Table
2).
New Orders
At 56.9 points, the new orders index grew for the
twenty-sixth consecutive month, indicating increase in new orders in May 2019.
Eight subsectors reported growth, 1 remained unchanged, while 5 contracted in
the review month (Fig. 4 and Table 3).
Supplier Delivery Time
The manufacturing supplier delivery time index
stood at 58.4 points in May 2019, indicating faster supplier delivery time. The
index has recorded growth for twenty-four consecutive months. Twelve of the 14
subsectors recorded improved suppliers’ delivery time, while 1 remained
unchanged and 1 recorded decline in the review period (Fig. 5 and Table 4).
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