Nigeria Economy | |
Nigeria Economy | |
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Wednesday, January 03, 2018 /1:20PM /CBN
The December 2017
PMI survey was conducted by the Statistics Department of the Central Bank of
Nigeria during the period December 13 - 17, 2017. The respondents were
purchasing and supply executives of manufacturing and non-manufacturing
organizations in 15 locations in Nigeria (Fig. 1).
The
Bank makes no representation regarding the individual companies, other than the
data they 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: 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:
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.
The
Manufacturing PMI in the month of December stood at 59.3 index points
indicating expansion in the manufacturing sector for the ninth consecutive
months. (Fig. 3 and Table 1).
Fifteen
of the 16 subsectors reported growth in the review month in the following order
petroleum & coal products; textile, apparel, leather and footwear; cement;
transportation equipment; paper products; food, beverage & tobacco
products; furniture & related products; plastics & rubber products;
nonmetallic mineral products; printing & related support activities;
appliances and components; chemical & pharmaceutical products; fabricated
metal products; primary metal and electrical equipment.
The
computer & electronic product sector contracted in the review month.
Production Level
New Orders
At
60.0 points, the new orders index grew for the nine consecutive month,
indicating increase in new orders in December 2017. Thirteen subsectors
reported growth, 2 remained unchanged while 1 contracted in the review month
(Fig. 5 and Table 3).
Supplier Delivery Time
The
manufacturing supplier delivery time index stood at 57.4 points in December
2017, indicating faster supplier delivery time for the seventh consecutive
month. Eleven subsectors recorded improved suppliers’ delivery time, 1 remained
unchanged while 4 subsectors recorded delayed delivery time (Fig. 6 and Table
4).
Employment Level
The
employment level index in December 2017 stood at 53.9 points, indicating growth
in employment level for the eighth consecutive month. Of the 16 subsectors, 9
subsectors increased their employment level, 3 remained unchanged while 4
subsectors reduced their employment level in the review month (Fig. 7 and Table
5).
Raw material Inventories
The
Manufacturing sector inventories index grew for the ninth consecutive months in
December 2017. At 61.1 points, the index grew at a faster rate when compared to
its level in the previous months. Eleven of the 16 subsectors recorded growth,
3 remained unchanged while 2 subsectors recorded decline in raw material
inventories (Fig. 8 and Table 6).
Non-Manufacturing PMI Report
The
composite PMI for the non-manufacturing sector stood at 62.1 points in December
2017, indicating expansion in the Non-manufacturing PMI for the eighth
consecutive month.
Fifteen
of the 18 non-manufacturing subsectors recorded growth in the following order:
arts, entertainment & recreation; agriculture; transportation & warehousing;
utilities; water supply, sewage & waste management; finance &
insurance; health care & social assistance; real estate, rental &
leasing; wholesale trade; accommodation & food services; electricity, gas,
steam & air conditioning supply; educational services; construction;
information & communication and professional, scientific, & technical
services.
The
management of companies remained unchanged, while the public administration and
repair, maintenance/washing of motor vehicles… subsectors recorded contraction
in the review period (Fig. 10 and Table 7).
Business Activity
At
67.4 points, the business activity index grew for the nine consecutive month,
indicating expansion in business activity in December 2017. The index grew at a
faster rate, when compared to its level in the previous month, indicating
improvements in business activities in the current month. Sixteen subsectors
recorded growth in business activity, one sector remain unchanged, while one
declined in the review month (Table 8).
New Orders
At
62.2 points, new orders index grew in December 2017 for the ninth consecutive
months. Of the 18 subsectors, 15 reported growth, 1 remained unchanged while 2
recorded declines (Table 9).
Employment Level
The
employment level Index for the non-manufacturing sector stood at 55.7 points,
indicating growth in employment for the eighth consecutive month. Eleven
subsectors recorded growth in the review month, 3 remained unchanged while 4
recorded declines (Table 10).
Non-manufacturing Inventory
At
62.9 points, non-manufacturing inventory index grew for the eighth consecutive
month, indicating growth in inventories in the review period. Sixteen
subsectors recorded higher inventories, while 2 subsectors recorded lower
inventory in November, 2017 (Table 11).
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