Manufacturing PMI Declines to 42.1% in August from 44.1% in July 2016 - CBN

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Thursday, September 01, 2016 3:32pm /CBN

Manufacturing PMI Report
Production level, new orders, employment level and raw material inventories declining at a faster rate; supplier delivery time improving at a slower rate

The Manufacturing PMI declined to 42.1 index points in August 2016, compared to 44.1 in the preceding month (Fig. 2 and Table 1). This implies that the manufacturing sector declined at a faster rate during the review period.

Of the sixteen manufacturing sub-sectors, fifteen recorded decline in the review month in the following order: nonmetallic mineral products; transportation equipment; petroleum & coal products; fabricated metal products; furniture & related products; cement; appliances & components; printing & related support activities; paper products; computer & electronic products; food, beverage & tobacco products; primary metal; textile, apparel, leather & footwear; plastics & rubber products; and chemical & pharmaceutical products.

The electrical equipment sub-sector remained unchanged in the review period.





Production Level
At 40.5 index points, the production level index for manufacturing sector declined for the eighth consecutive month. It declined at a faster rate than that recorded in July 2016.

All the sixteen manufacturing sub-sectors recorded declines in production level during the review month in the following order: appliances & components; plastics & rubber products; petroleum & coal products; transportation equipment; nonmetallic mineral products; computer & electronic products; primary metal; paper products; electrical equipment; cement; fabricated metal products; food, beverage & tobacco products; furniture & related products; printing & related support activities; textile, apparel, leather & footwear; and chemical & pharmaceutical products (Table 2).



New Orders
The new orders index declined for the eighth consecutive month. At 37.5 points, the index declined at a faster rate when compared to that in July 2016.

The fourteen sub-sectors that recorded declines in new orders were: appliances & components; nonmetallic mineral products; fabricated metal products; petroleum & coal products; furniture & related products; cement; transportation equipment; primary metal; food, beverage & tobacco products; printing & related support activities; paper products; textile, apparel, leather & footwear; plastics & rubber products; and computer & electronic products.

The chemical & pharmaceutical products sub-sector remained unchanged, while the electrical equipment sub-sector grew in the month under review (Table 3).

 



Supplier Delivery Time
At 57.4 index points, the supplier delivery time index for manufacturing sub-sectors improved at a faster rate than that in the month of July 2016. The index improved for the sixth consecutive month.

Fourteen sub-sectors recorded improving suppliers’ delivery time in the following order: primary metal; petroleum & coal products; chemical & pharmaceutical products; nonmetallic mineral products; electrical equipment; plastics & rubber products; appliances & components; fabricated metal products; furniture & related products; printing & related support activities; food, beverage & tobacco products; textile, apparel, leather & footwear; cement; and computer & electronic products.

The transportation equipment sub-sector remained unchanged, while only the paper products sub-sector decline in the review period (Table 4).



Employment Level
Employment level index in the month of August 2016 stood at 40.4 points, indicating a faster decline when compared with the level in the preceding month. The index has been declining for eighteen consecutive months.

Of the sixteen sub-sectors, fifteen recorded decline in the following order: transportation equipment; cement; fabricated metal products; nonmetallic mineral products; furniture & related products; printing & related support activities; computer & electronic products; chemical & pharmaceutical products; petroleum & coal products; textile, apparel, leather & footwear; primary metal; food, beverage & tobacco products; electrical equipment; paper products; and plastics & rubber products. Only the appliances and components sub-sector recorded growth in the review period (Table 5).



Raw Materials Inventories
At 40.0 index points, the raw materials inventories index declined for the eighth consecutive month. The index declined at a faster rate when compared with the previous month.

Of the sixteen sub-sectors, twelve recorded declines in raw materials inventories in the following order: petroleum & coal products; nonmetallic mineral products; chemical & pharmaceutical products; computer & electronic products; printing & related support activities; primary metal; food, beverage & tobacco products; fabricated metal products; electrical equipment; furniture & related products; textile, apparel, leather & footwear; and paper products.

The transportation equipment sub-sector remained unchanged, while the remaining three sub-sectors recorded growth in the order: appliances & components; cement; and plastics & rubber products (Table 6).



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