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Manufacturing PMI Stands at 52.5% in May 2017 from 51.1% in April 2017 - CBN

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Thursday, June 01, 2017 10:25 AM/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 percentage of positive responses plus one-half of the percentage 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 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

Manufacturing PMI for the month of May 2017 showing Production level, new orders and raw materials inventories growing at a faster rate; employment level recovering from contraction; and supplier delivery time moderating.



The Manufacturing PMI stood at 52.5 index points in May 2017, indicating expansion in the manufacturing sector for the second consecutive month (Fig. 3 and Table 1).  

Ten of the 16 sub-sectors reported growth in the review month in the following order: primary metal; petroleum & coal products; plastics & rubber products; paper products; electrical equipment; appliances & components; textile, apparel, leather & footwear; cement; food, beverage & tobacco products and chemical & pharmaceutical products.

The remaining 6 sub-sectors declined in the order: transportation equipment; nonmetallic mineral products; fabricated metal products; printing & related support activities; furniture & related products and computer & electronic products.

 

 

Production Level  

The production level index for manufacturing sector expanded for the third consecutive month in May 2017. The index at 58.7 points indicated an increase in production at a faster rate, when compared to the 58.5 points in the previous month.  

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




New Orders
New orders index for the month of May stood at 50.5 points, indicating a faster growth in new orders for the second consecutive month.  

Eight sub-sectors reported growth in new orders in the following order: appliances & components; plastics & rubber products; textile, apparel, leather & footwear; paper products; chemical & pharmaceutical products; food, beverage & tobacco products; petroleum & coal products and primary metal.

The cement and electrical equipment sub-sectors remained unchanged, while the printing & related support activities; nonmetallic mineral products; computer & electronic products; transportation equipment; fabricated metal products and furniture & related products sub-sectors recorded declines (Table 3). 
 
 



Supplier Delivery Time

At 49.9 index points, the supplier delivery time index for the manufacturing sector declined for the second consecutive month, though at a slower rate, when compared to the previous month. 

Eight sub-sectors recorded delayed suppliers’ delivery time in the following order: appliances & components; transportation equipment; fabricated metal products; nonmetallic mineral products; cement; furniture & related products; chemical & pharmaceutical products and food, beverage & tobacco products. 

The remaining 8 sub-sectors recorded improvement in delivery time in May 2017 in the following order: primary metal; petroleum & coal products; paper products; printing & related support activities; computer & electronic products; textile, apparel, leather & footwear; electrical equipment and plastics & rubber products (Table 4). 

 

 

 

Employment Level
Employment level index in May 2017 stood at 50.7 points, indicating growth in employment level after twenty-six consecutive month of contraction in employment.  

Of the 16 sub-sectors, 7 recorded growth in employment in the following order: primary metal; plastics & rubber products; petroleum & coal products; paper products; appliances & components; cement and fabricated metal products.  

The electrical equipment and textile, apparel, leather & footwear remained unchanged, while the remaining 7 sub sectors recorded contraction in employment in the following order: computer & electronic products; transportation equipment; chemical & pharmaceutical products; nonmetallic mineral products; food, beverage & tobacco products; printing & related support activities and furniture & related products (Table 5).

 



Raw Materials Inventory

At 50.8 points, the raw materials inventory index grew for the second consecutive month. The index grew at a faster rate relative to its level in April 2017.  

Of the 16 sub-sectors, 10 recorded growth in raw materials inventories in the order: petroleum & coal products; plastics & rubber products; paper products; transportation equipment; appliances & components; primary metal; food, beverage & tobacco products; nonmetallic mineral products; electrical equipment and cement.

The computer & electronic products, fabricated metal products, and printing & related support activities sub-sectors remained unchanged, while the furniture & related products; chemical & pharmaceutical products and textile, apparel, leather & footwear recorded lower inventories in May 2017 (Table 6).


 
 

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