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Manufacturing PMI Stands at 46.0% in November from 44.1% in October 2016 - CBN

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Friday, November 02, 2016 2:02 PM/CBN

Data and Method of Presentation
The Manufacturing and Non-Manufacturing PMI Report on businesses is based on data compiled from purchasing and supply executives. Survey responses indicate whether there is change or no change in the level of business activities in the current month compared with the previous month.

For each of the indicators measured, this report shows the diffusion index of the responses. The diffusion index is computed as the percent of positive responses plus one-half of the percent of those reporting no change.

The composite PMI is then computed as the weighted average of five diffusion indices for manufacturing sector: production level, new orders, supplier delivery time, employment level and raw materials inventory, with assigned weights of 25%, 30%, 15%, 10% and 20%, respectively.

The composite PMI for non-manufacturing sector is computed from four 2 diffusion indices: business activity, 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 declining.

The sub-sectors reporting growth are listed in the order of highest to lowest growth. For the sub-sectors reporting contraction/decline, they are listed in the order of the highest to the lowest decline

Manufacturing PMI Report
Production level, new orders, employment level and raw material inventories declining at a slower rate; supplier delivery time improving at a faster rate in November 2016

The Manufacturing PMI stood at 46.0 index points in November 2016, indicating a slowing decline in the manufacturing sector during the review period, but a marginal improvement compared with the previous month level (Fig. 2 and Table 1). Twelve of the sixteen sub-sectors surveyed recorded declines in the review month in the following order: computer & electronic products; primary metal; petroleum & coal products; transportation equipment; furniture & related products; printing & related support activities; nonmetallic mineral products; fabricated metal products; chemical & pharmaceutical products; textile, apparel, leather & footwear; paper products; and appliances & components. The remaining four subsectors grew in the order: cement; food, beverage & tobacco products; plastics & rubber products; and electrical equipment.





Production Level
At 46.9 index points, the production level index for manufacturing sector declined for the eleventh consecutive month, but showed marginal improvement compared with the index recorded in October 2016.

Ten manufacturing sub-sectors recorded declining in production level during the review month in the following order: primary metal; petroleum & coal products; computer & electronic products; transportation equipment; furniture & related products; fabricated metal products; nonmetallic mineral products; paper products; chemical & pharmaceutical products; and printing & related support activities.

The appliances & components sub-sector remained unchanged, while the remaining five sub-sectors grew in the review period in the order: cement; food, beverage & tobacco products; electrical equipment; plastics & rubber products; and textile, apparel, leather & footwear (Table 2).



New Orders
The new orders index declined for the eleventh consecutive month. At 45.1 points, the index showed an improvement and declined at a slower rate when compared to the 38.7 index points in October 2016.

The eleven sub-sectors that recorded declines in new orders were: computer & electronic products; primary metal; transportation equipment; printing & related support activities; furniture & related products; petroleum & coal products; nonmetallic mineral products; plastics & rubber products; fabricated metal products; textile, apparel, leather & footwear; and chemical & pharmaceutical products.

The paper products sub-sector remained unchanged, while the remaining four sub-sectors grew in the order: cement; appliances & components; electrical equipment; and food, beverage & tobacco products (Table 3).



Supplier Delivery Time
At 53.2 index points, the supplier delivery time index for manufacturing sub-sectors witnessed improvement at decreasing rate in the month of November 2016. The index recorded improvements for the ninth consecutive month.

Ten sub-sectors recorded improving suppliers’ delivery time in the following order: computer & electronic products; petroleum & coal products; plastics & rubber products; transportation equipment; paper products; furniture & related products; printing & related support activities; textile, apparel, leather & footwear; nonmetallic mineral products; and fabricated metal products.

The appliances & components; cement; and primary metal sub-sectors remained unchanged, while the electrical equipment; chemical & pharmaceutical products; and food, beverage & tobacco products sub-sectors recorded worsening delivery time in November (Table 4).



Employment Level
Employment level index in the month of November 2016 stood at 40.6 points, indicating declines in employment level for the twenty-first consecutive month.

However, the index declined at a faster rate when compared with the level in the preceding month.

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

The cement sub-sector remained unchanged, while the plastics & rubber products sub-sector recorded growth during the review period (Table 5).



Raw Materials Inventory
At 46.1 index points, the raw materials inventory index declined for the eleventh consecutive month in the review period. The index declined at a slower rate when compared with the previous month.

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

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



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