Manufacturing PMI Rises to 45.8% in May from 43.7% in April 2016 - CBN

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Wednesday, June 01, 2016 5:02PM /CBN

 

Manufacturing PMI Report

 

 

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

The Manufacturing PMI rose to 45.8 index points in May 2016, compared to 43.7 in the preceding month (Fig. 2 and Table 1). This implies that the manufacturing sector declined at a slower rate during the review period.

 

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

 

The remaining five sub-sectors however recorded expansion in the following order: computer & electronic products; appliances and components; cement; plastics & rubber products and transportation equipment.


 

 

Production Level

At 49.3 index points, the production level index for manufacturing sector declined for the fifth consecutive month, but at a slower rate than that recorded in April 2016.

 

Of the sixteen manufacturing sub-sectors, ten recorded declines in production level during the review month in the following order: primary metal; petroleum & coal products; electrical equipment; printing & related support activities; paper products; fabricated metal products; nonmetallic mineral products; furniture & related products; textile, apparel, leather & footwear and food, beverage & tobacco products. The transportation equipment sub-sector recorded no change.

The remaining five recorded growth in production level during the review month in the following order: cement; plastics & rubber products; appliances & components; chemical & pharmaceutical products and computer & electronic products (Table 2).

 

 

New Orders

The new orders index rose to 43.2 index points in May 2016, but still indicating a decline for the fifth consecutive month.

 

The twelve sub-sectors that recorded declines in new orders were: primary metal; petroleum & coal products; transportation equipment; fabricated metal products; furniture & related products; paper products; printing & related support activities; nonmetallic mineral products; textile, apparel, leather & footwear; chemical & pharmaceutical products; electrical equipment and food, beverage & tobacco products.

 

The appliances & components sub-sector recorded no change. The remaining three sub-sectors recorded growth in new orders as follows: computer & electronic products; plastics & rubber products and cement (Table 3).

 



Supplier Delivery Time

At 52.4 index points, the supplier delivery time index for manufacturing sub-sectors improved for the month of May 2016. The index recorded improved supplier delivery time for four consecutive months.

 

Eight sub-sectors recorded improving suppliers’ delivery time in the following order: transportation equipment; plastics & rubber products; petroleum & coal products; chemical & pharmaceutical products; paper products; primary metal; fabricated metal products and textile, apparel, leather & footwear. The appliances & components sub-sector remained unchanged.

 

The remaining seven subsectors recorded worsening delivery time in May in the following order: electrical equipment; food, beverage & tobacco products; computer & electronic products; nonmetallic mineral products; cement; printing & related support activities and furniture & related products (Table 4).

Employment Level

Employment level index in the month of May 2016 stood at 46.9, indicating declines in employment level for the fifteenth consecutive month. However, the index declined at a slower rate when compared with the level in the preceding month.

 

Of the sixteen sub-sectors, ten recorded declines in the following order: paper products; chemical & pharmaceutical products; petroleum & coal products; printing & related support activities; furniture & related products; primary metal; nonmetallic mineral products; textile, apparel, leather & footwear; fabricated metal products and plastics & rubber products.

 

The cement and electrical equipment sub-sectors remained unchanged. The remaining four sub-sectors recorded growth in the following order: transportation equipment; appliances & components; computer & electronic products and food, beverage & tobacco products (Table 5).


 

Raw Materials Inventory

At 45.6 index points, the raw materials inventory index declined at a slower rate in the month of May, compared with 43.0 in the previous month. The index has been on the decline for the fifth consecutive month.

 

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

 

The remaining three sub-sectors recorded growth in inventories in the following order: computer & electronic products; appliances & components and cement (Table 6).

 

 

Non-Manufacturing PMI Report

 

 

Business activity and employment level declining at slower rate; new orders and raw materials inventories declining at faster rate

 

The composite PMI for the non-manufacturing sector recorded decline for the fifth consecutive month. The index remained at the 44.3 index points registered in the preceding month (Table 7 and Fig. 3).

 

Of the eighteen non-manufacturing sub-sectors, fourteen recorded decline in May 2016 in the following order: professional, scientific, & technical services; public administration; management of companies; construction; real estate, rental & leasing; information & communication; utilities; finance & insurance; agriculture; wholesale trade; accommodation & food services; health care & social assistance; repair, maintenance/washing of motor vehicles and electricity, gas, steam & air conditioning supply.

 

The water supply, sewage & waste management and transportation & warehousing sub-sectors remained unchanged, while the remaining two subsectors recorded growth in the order: arts, entertainment & recreation and educational services.



Business Activity

At 44.3 index points, business activity declined for the fifth consecutive month in May 2016. Fourteen out of eighteen sub-sectors recorded declines in the order: professional, scientific, & technical services; public administration; construction; management of companies; utilities; real estate, rental & leasing; information & communication; repair, maintenance/washing of motor vehicles; accommodation & food services; wholesale trade; water supply, sewage & waste management; electricity, gas, steam & air conditioning supply; agriculture and finance & insurance.

 

The remaining four sub-sectors recorded growth in the review month in the order: arts, entertainment & recreation; educational services; health care & social assistance and transportation & warehousing (Table 8).

 



New Orders

At 41.3 index points, new orders declined at a faster rate in the month of May 2016 when compared with that of the preceding month.

 

The index has recorded decline in five consecutive months. Of the eighteen sub-sectors, sixteen recorded decline in the following order: professional, scientific, & technical services; public administration; real estate, rental & leasing; information & communication; construction; management of companies; utilities; water supply, sewage & waste management; finance & insurance; agriculture; accommodation & food services; wholesale trade; health care & social assistance; transportation & warehousing; educational services and repair, maintenance/washing of motor vehicles.

 

The electricity, gas, steam & air conditioning supply remained unchanged, while arts, entertainment & recreation recorded growth in the review month (Table 9).



Employment Level

The employment level Index declined for the fifth consecutive month in May 2016. At 44.6 index points, the employment level declined at a slower rate when compared with the 43.3 recorded in April.

 

Fifteen sub-sectors recorded declines in employment in the order: management of companies; information & communication; utilities; construction; health care & social assistance; agriculture; finance & insurance; professional, scientific, & technical services; real estate, rental & leasing; water supply, sewage & waste management; transportation & warehousing; wholesale trade; educational services; repair, maintenance/washing of motor vehicles and arts, entertainment & recreation.

 

The remaining three sub-sectors reported growth in the following order: public administration; electricity, gas, steam & air conditioning supply and accommodation & food services (Table 10).

 

Raw Materials Inventory

Non-manufacturing raw materials Inventory index declined to 46.9 index points in the review month from 47.6 in April 2016.

 

Eleven sub-sectors recorded lower inventories in the following order: public administration; professional, scientific, & technical services; construction; real estate, rental & leasing; management of companies; finance & insurance; information & communication; accommodation & food services; health care & social assistance; agriculture and wholesale trade.

 

The remaining seven sub-sectors recorded higher inventory in the order: water supply, sewage & waste management; transportation & warehousing; educational services; repair, maintenance/washing of motor vehicles; utilities; electricity, gas, steam & air conditioning supply; and arts, entertainment & recreation (Table 11)



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