Monday, October 28, 2019 / 09:48 AM / By CBN / Header Image Credit: CBN
The October 2019 PMI survey was conducted by the Statistics Department of the Central Bank of Nigeria during the period October 7-11, 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 October stood at 58.2 index points, indicating expansion in the manufacturing sector for the thirty-first consecutive month (Fig. 2 and Table 1). The index grew at a faster rate when compared to the index in September. Thirteen of the 14 surveyed subsectors reported growth in the review month in the following order: petroleum & coal products; cement; electrical equipment; furniture & related products; fabricated metal products; printing & related support activities; textile, apparel, leather & footwear; food, beverage & tobacco products; nonmetallic mineral products; plastics & rubber products; primary metal; chemical & pharmaceutical products; and transportation equipment. The paper products subsector recorded decline in the review period (Fig. 2 and Table 1).
At 59.3 points, the production level index for manufacturing sector grew for the thirty-second consecutive month in October 2019. The index indicated a faster growth in the current month, when compared to its level in September 2019. Eleven of the 14 manufacturing subsectors recorded increased production level, while 3 recorded decline (Fig. 3 and Table 2).
At 57.9 points, the new orders index grew for the thirty-first consecutive month, indicating increase in new orders in October 2019. The index grew at a faster rate, when compared to its level in September 2019. Nine subsectors reported growth, 2 remained unchanged, while 3 contracted in the review month (Fig. 4 and Table 3).
Supplier Delivery Time
The manufacturing supplier delivery time index stood at 58.6 points in October 2019, indicating faster supplier delivery time. The index has recorded growth for twenty-ninth consecutive months. Nine of the 14 subsectors recorded improved suppliers' delivery time, while 5 remained unchanged in the review period (Fig. 5 and Table 4).
The employment level index for October 2019 stood at 56.8 points, indicating growth in employment level for the thirtieth consecutive month. Of the 14 subsectors, 11 reported increased employment level, 1 reported unchanged employment level while 2 reported decreased employment in the review month (Fig. 6 and Table 5).
Raw material Inventories
The Manufacturing sector inventories index grew for the thirty-first consecutive month in October 2019. At 58.6 points, the index grew at a faster rate when compared to its level in September 2019. Ten of the 14 subsectors recorded growth, 2 remained unchanged, while 2 reported declined raw material inventories in the review month (Fig. 7 and Table 6).