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Manufacturing PMI Stands at 54.1% in July 2017 from 52.9% in June 2017 - CBN

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Tuesday, August 01, 2017 2:15 PM /CBN 

Introduction

The July 2017 PMI survey was conducted by the Statistics Department of the Central Bank of Nigeria, during the period July 10 - 14, 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 1,791 responses were received from a sample of 1,950 respondents, representing a response rate of 91.8 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’ responses. 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 contracting.  

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

Manufacturing PMI Report

Production level, new orders, supplier delivery time, employment level and raw materials inventory growing at a faster rate 

The Manufacturing PMI stood at 54.1 index points in July 2017, indicating expansion in the manufacturing sector for the fourth consecutive month (Fig. 3 and Table 1).  

Eleven of the 16 subsectors reported growth in the review month in the following order: appliances & components; computer & electronic products; cement; primary metal; chemical & pharmaceutical products; food, beverage & tobacco products; textile, apparel, leather & footwear; printing & related support activities; paper products; electrical equipment and transportation equipment.  

The remaining 5 subsectors declined in the order: petroleum & coal products; fabricated metal products; furniture & related products; nonmetallic mineral products and plastics & rubber products. 

 

Production Level

The production level index for the manufacturing sector grew for the fifth consecutive month in July 2017.  

The index at 59.3 points indicated an expansion in production at a faster rate, when compared to the level recorded in the previous month.  

Fourteen of the sixteen manufacturing subsectors recorded expansion in production level during the review month (Table 2).  

 

New Orders

At 52.7 points, new orders index grew for the fourth consecutive month. Eight subsectors reported growth, one remained unchanged while the remaining seven declined in the review month (Table 3). 

 

Supplier Delivery Time

The supplier delivery time index for the manufacturing sector, at 51.3 points in July 2017, rose for the second consecutive month. Ten subsectors recorded improved suppliers’ delivery time while the remaining 6 subsectors recorded delayed delivery time (Table 4). 

Employment Level

Manufacturing employment level index in July 2017 stood at 51.8 points, indicating growth in employment level for the third consecutive month.  

Of the sixteen subsectors, eight recorded growth, three subsectors remained unchanged while the remaining five subsectors recorded decline in employment level (Table 5). 

Raw Materials Inventory

At 53.6 points, the raw materials inventory index grew for the fourth consecutive month, and at a faster rate compared to its level in June 2017. Eleven of the sixteen subsectors recorded growth, two recorded no change while three subsectors recorded decline in raw materials inventory (Table 6). 

 

Non-Manufacturing PMI Report  

New orders, employment level and inventory growing at a faster rate; business activity growing at a slower rate in July 2017 

 

The composite PMI for the non-manufacturing sector grew to 54.4 points in July 2017, indicating growth in Non-manufacturing PMI for the third consecutive month.  

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

The construction and arts, entertainment & recreation sub sectors recorded contraction in the Nonmanufacturing PMI (Fig. 10, Table 7). 

  

Business Activity 

The business activity index rose to 56.8 points in July 2017 for the fourth consecutive month. The index grew at a slower rate, when compared to its level in the previous month.  

Fourteen subsectors recorded growth in business activity, one remained unchanged while the remaining three declined in the review month (Table 8). 

  

New Orders 

New orders index at 55.1 points grew in July 2017 for the fourth consecutive month. Of the eighteen subsectors, fifteen reported growth, one remained unchanged while the remaining two recorded declines (Table 9). 

 

Employment Level 

The employment level Index for the nonmanufacturing sector stood at 54.0 points, indicating growth in employment for the third consecutive month. Fourteen subsectors recorded growth in the review month, one remained unchanged while the remaining three recorded declines (Table 10). 

 

Non-manufacturing Inventory  

At 51.9 points, non-manufacturing inventory index grew for the third consecutive month, indicating growth in inventories in the review period.  

Twelve subsectors recorded higher inventories, two remained unchanged while the remaining four subsectors recorded lower inventory in July, 2017 (Table 11). 

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