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Manufacturing PMI Stands at 53.6% in August 2017 from 54.1% in July 2017 - CBN

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Tuesday, September 05, 2017 / 2:14 PM /CBN

Introduction

The August 2017 PMI was conducted by the Statistics Department of the Central Bank of Nigeria during the period August 7 - 11, 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 1,671 responses were received from a sample of 1,950 respondents, representing a response rate of 85.7 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 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 one-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 onehalf 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, 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 the 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.  

Sokoto Zamfara Kebbi Katsina Kano Jigawa Kaduna Yobe Bauchi Borno Gombe Adamawa Plateau Taraba Nasarawa Niger Kwara Kogi Benue Oyo Ogun Osun Ekiti Ondo Lagos Edo Delta Imo Akwa Ibom Abia Cross River FCT 2 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.

Manufacturing PMI Report

Production level, new orders and employment level growing at a slower rate; while supplier delivery time and inventories growing at a faster rate in August 2017 



The Manufacturing PMI stood at 53.6 index points in August 2017, indicating expansion in the manufacturing sector for the fifth consecutive month (Fig. 3 and Table 1). ]

Twelve of the 16 subsectors reported growth in the review month in the following order: computer & electronic products; appliances and components; chemical & pharmaceutical products; textile, apparel, leather and footwear; electrical equipment; printing & related support activities; paper products; nonmetallic mineral products; food, beverage & tobacco products; furniture & related products; cement and plastics & rubber products.  

The remaining 4 subsectors contracted in the order: transportation equipment; primary metal; petroleum & coal products and fabricated metal products.



Production Level

The production level index for manufacturing sector grew for the sixth consecutive month in August 2017. At 57.4 points, the index indicated an increase in production at a slower rate, when compared to its level in the preceding month.  

Eleven of the 16 manufacturing subsectors recorded increase in production level, 1 remained unchanged and the other 4 declined during the review month (Fig. 4 and Table 2). 



New Orders
At 52.3 points, the new orders index grew for the fifth consecutive month. Six subsectors reported growth, 1 remained unchanged while 9 contracted in the review month (Fig. 5 and Table 3).

 

Supplier Delivery Time
The supplier delivery time index for the manufacturing sector, at 52.0 points in August 2017, rose for the third consecutive month. Nine subsectors recorded improved suppliers’ delivery time, 2 remained unchanged while 5 subsectors recorded delayed delivery time (Fig. 6 and Table 4).



Employment Level
The employment level index in August 2017 stood at 51.5 points, indicating growth in employment level for the fourth consecutive month. Of the 16 subsectors, 7 recorded growth, 4 remained unchanged while 5 subsectors recorded decline in employment level over the preceding month (Fig. 7 and Table 5).

 

 

Inventories
At 54.9 points, inventories index grew for the fifth consecutive month, and at a faster rate when compared to its level in July 2017. Thirteen of the 16 subsectors recorded growth, 1 remained unchanged while 2 subsectors recorded decline in inventories (Fig. 8 and Table 6)



Non-Manufacturing PMI Report

Business activity and new orders growing at a slower rate; employment level and inventories growing at a faster rate in August 2017



The composite PMI for the non-manufacturing sector stood at 54.1 points in August 2017, indicating growth in Non-manufacturing PMI for the fourth consecutive month.  

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

The real estate, rental & leasing; construction; and management of companies sub sectors recorded contraction in the review period (Fig. 10 and Table 7).



Business Activity

The business activity index moderated to 56.1 points in August 2017, indicating growth for the fifth consecutive month.  

The index grew at a slower rate, when compared to its level in the previous month. Twelve subsectors recorded growth in business activity, 3 remained unchanged while 3 declined in the review month (Table 8)



New Orders

New orders index at 53.5 points grew in August 2017 for the fifth consecutive month. Of the 18 subsectors, 12 reported growth, 1 remained unchanged while 5 recorded declines (Table 9).



Employment Level
The employment level Index for the nonmanufacturing sector stood at 54.4 points, indicating growth in employment for the fourth consecutive month. Fifteen subsectors recorded growth in the review month, 1 remained unchanged while 2 recorded declines (Table 10).



Non-manufacturing Inventory

At 52.3 points, non-manufacturing inventory index grew for the fourth consecutive month, indicating growth in inventories in the review period.

Eleven subsectors recorded higher inventories, 2 remained unchanged while 5 subsectors recorded lower inventory in August, 2017 (Table 11). 



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