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Manufacturing PMI Stands at 52.9% in June 2017 from 52.5% in May 2017 - CBN

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Friday, June 30, 2017 6:30 PM /CBN

Introduction
The June 2017 PMI was conducted by the Statistics Department of the Central Bank of Nigeria, during the period June 12 - 16, 2017.  

The respondents were purchasing and supply executives of manufacturing and non-manufacturing organizations in 13 locations in Nigeria (2 states in each geopolitical zone and the Federal Capital Territory, Fig. 1). A total of 1,796 responses were received from a sample of 1,950 respondents, representing a response rate of 92.1 per cent. 

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. 



Fig. 1: Map of Nigeria showing the survey locations 

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
New orders, employment and raw materials inventories growing at a faster rate; Production level growing at a slower rate; and supplier delivery time growing from contraction





The Manufacturing PMI stood at 52.9 index points in June 2017, indicating expansion in the manufacturing sector for the third consecutive month (Fig. 3 and Table 1).  

Twelve of the 16 sub- sectors reported growth in the review month in the following order: computer & electronic products; paper products; plastics & rubber products; primary metal; transportation equipment; petroleum   &   coal   products; appliances & components; textile, apparel, leather & footwear; furniture & related products; electrical equipment; food, beverage & tobacco products and fabricated metal products.  

The remaining 4 sub-sectors declined in the order: nonmetallic mineral products; cement; chemical & pharmaceutical products and printing & related support activities. 

  

Production Level
The production level index for manufacturing sector grew for the fourth consecutive month in June 2017. The index at 58.2 points indicated an increase in production but at a slower rate, when compared to the level attained in the previous month.

Fourteen manufacturing sub-sectors recorded increase in production level during the review month in the following order: computer   & electronic products; plastics & rubber products; transportation equipment; primary metal; appliances & components; paper products; textile, apparel, leather & footwear; electrical equipment; petroleum & coal products; fabricated metal products; furniture & related products; food, beverage & tobacco products; cement and printing & related support activities.  

The nonmetallic mineral products and chemical & pharmaceutical products sub-sectors recorded decline in production (Table 2). 

New Orders
At 51.0 points, new orders index grew for the third consecutive month. Eight sub-sectors reported growth in new orders in the following order: paper products; primary metal; plastics & rubber products; computer & electronic products; petroleum & coal products; furniture & related products; textile, apparel, leather & footwear and food, beverage & tobacco products.

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

  

Supplier Delivery Time
The supplier delivery time index for the manufacturing sector at 50.3 points in June 2017, rose from its contractionary level in the previous month.  

Seven sub-sectors recorded improvement in suppliers’ delivery time in the following order: computer & electronic products; electrical equipment;  furniture  &  related  products;  cement;  primary  metal;  food,  beverage  &    tobaccoproducts and chemical & pharmaceutical products. 

The nonmetallic mineral products; textile, apparel, leather & footwear and transportation equipment remained the same, while the remaining 6 sub-sectors recorded delayed supplier delivery time  in the following order: plastics & rubber products; appliances & components; petroleum & coal products; fabricated metal products; printing & related  support activities and paper products (Table 4). 



Employment Level
Employment level index in June 2017 stood at 51.1 points, indicating growth in employment level for the second consecutive month.  

Of the 16 sub-sectors, 10 recorded growth in employment in  the following order: computer & electronic products; plastics & rubber products; transportation equipment; appliances & components; paper products; petroleum & coal products; primary metal; fabricated  metal  products; textile, apparel, leather & footwear and food, beverage & tobacco  products.  

The remaining 6 sub sectors recorded contraction in employment in the following order: cement; nonmetallic mineral products; electrical equipment; furniture & related products; printing & related support activities and chemical & pharmaceutical products (Table 5). 




Raw Materials Inventory
At 52.3 points, the raw materials inventory index grew for the third consecutive month, and at a faster rate compared to its level in May 2017.  

Twelve of the 16 subsectors recorded growth in raw materials inventories in the order: appliances & components; petroleum & coal products; plastics & rubber products; computer & electronic products; transportation equipment; primary metal; paper products; food, beverage & tobacco products; textile, apparel, leather & footwear; electrical equipment; fabricated metal products and chemical & pharmaceutical products.  

The cement; furniture & related products; printing & related support activities and nonmetallic mineral products recorded lower inventories in the review month (Table 6) 



 

Non-Manufacturing PMI Report
Business activity, new orders, employment and inventory growing at a faster rate in June 2017 

 


 

The composite PMI for the non-manufacturing sector grew to 54.2 in June 2017 indicating growth in Non-manufacturing PMI for the second consecutive month.  

Of the 18 non-manufacturing subsectors, 15 recorded growth in the following order: utilities; water supply, sewage & waste management; finance & insurance; educational services; repair, maintenance/ washing of motor vehicles…; agriculture; health care & social assistance; information & communication; electricity, gas, steam & air conditioning supply; real estate, rental & leasing; wholesale trade; professional, scientific, & technical services; transportation & warehousing; accommodation & food services and arts, entertainment & recreation.  

The public administration, management of companies and construction sub sectors recorded contraction in the Non –manufacturing PMI in June 2017 (Fig. 10, Table 7). 

 

 

Business Activity
The business activity index rose to 57.0 points in June 2017 for the third consecutive month. The index grew at a faster rate, when compared to its level in the previous month.  

Thirteen sub-sectors recorded growth in the following order: utilities; finance & insurance; information & communication; repair, maintenance/washing of motor vehicles…; health care & social assistance; electricity, gas, steam & air conditioning supply; water supply, sewage & waste management; agriculture; educational services; real estate, rental & leasing; wholesale trade; accommodation & food services and transportation & warehousing.  

The arts, entertainment & recreation and public administration sub-sectors remained unchanged, while the remaining 3 sub-sectors recorded growth in the order: management of companies; construction; professional, scientific, & technical services (Table 8). 

 

 
 New Orders
New orders index at 54.6 points grew in June 2017 for the third consecutive month. Of the 18 subsectors, 15 subsectors reported growth in new orders in the following order: utilities; water supply, sewage & waste management; finance & insurance; repair, maintenance/washing of motor vehicles…; information & communication; real estate, rental & leasing; management of companies; electricity, gas, steam & air conditioning supply; educational services; wholesale trade; health care & social assistance; professional, scientific, & technical services; accommodation & food services; arts, entertainment & recreation and transportation & warehousing.  

The remaining 3 subsectors recorded decline in the order: public administration; construction; agriculture (Table 9). 

 

 

 

Employment Level
The employment level Index for the non-manufacturing sector stood at 53.4 points, indicating growth in employment for the second consecutive month.  

Sixteen sub-sectors recorded growth in employment level in the following order: utilities; finance & insurance; water supply, sewage & waste management; professional, scientific, & technical services; transportation & warehousing; arts, entertainment & recreation; construction; repair, maintenance/ washing of motor vehicles…; health care & social assistance; electricity, gas, steam & air conditioning supply; public administration; educational services; real estate, rental & leasing; wholesale trade; agriculture and information & communication.  

The accommodation & food services and management of companies recorded decline in employment in June 2017 (Table 10). 



 

Non-manufacturing Inventory
At 51.8 points, non-manufacturing inventory index grew for the second consecutive month indicating growth in inventories in the review period.  

Eight sub-sectors recorded higher inventories in June in the following order: water supply, sewage & waste management; agriculture; educational services; finance & insurance; health care & social assistance; utilities; professional, scientific, & technical services and wholesale trade.  

The accommodation & food services; construction; transportation & warehousing and public administration subsectors remain unchanged, while the management of companies; electricity, gas, steam & air conditioning supply; repair, maintenance/ washing of motor vehicles…; arts, entertainment & recreation; real estate, rental & leasing and information & communication subsectors recorded lower inventory (Table 11). 

 


 
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