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.
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).
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).
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).
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).
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).
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).