Thursday, November 30, 2017 6:50PM /CBN
The November 2017 PMI was conducted by the Statistics Department of the Central Bank of Nigeria during the period November 13 - 17, 2017. The respondents were purchasing and supply executives of manufacturing and non-manufacturing organizations in 15 locations in Nigeria (Fig. 1).
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.
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 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 half 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, level of new orders, suppliers’ delivery time, employment level and raw materials inventory/work in progress, with assigned weights of 25%, 30%, 15%, 10% and 20%, respectively.
The composite PMI for the nonmanufacturing sector is computed from four diffusion indices: business activity, level of 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, while those reporting contraction are listed in the order of the highest to the lowest contraction.
The Manufacturing PMI in the month of November stood at 55.9 index points indicating expansion in the manufacturing sector for the eight consecutive months. (Fig. 3 and Table 1).
Twelve of the 16 subsectors reported growth in the review month in the following order: petroleum & coal products; printing & related support activities; computer & electronic products; textile, apparel, leather and footwear; plastics & rubber products; food, beverage & tobacco products; nonmetallic mineral products; chemical & pharmaceutical products; furniture & related products; paper products; cement and primary metal.
The electrical equipment sector remained unchanged, while the appliances & components; fabricated metal products and transportation equipment sectors contracted in the review month.
Production Level At 59.3 points, the production level index for the manufacturing sector grew for the eighth consecutive month in November 2017. The index indicated an increase in production in the current month, when compared to its level in the preceding month. Ten of the 16 manufacturing subsectors recorded increase in production level, 4 remained unchanged, while the remaining 2 recorded declines in production during the review month (Fig. 4 and Table 2).
New Orders At 54.3 points, the new orders index grew for the eighth consecutive month. Nine subsectors reported growth, 3 remained unchanged while 4 contracted in the review month (Fig. 5 and Table 3).
Supplier Delivery Time The manufacturing supplier delivery time index stood at 56.0 points in November 2017, indicating faster supplier delivery time for the sixth consecutive month. Eleven subsectors recorded improved suppliers’ delivery time, 4 remained unchanged while 1 subsector recorded delayed delivery time (Fig. 6 and Table 4).
Employment Level The employment level index in November 2017 stood at 53.7 points, indicating growth in employment level for the seventh consecutive month. Of the 16 subsectors, 8 recorded growth, 3 remained unchanged while 5 subsectors reduced their employment level in the review month (Fig. 7 and Table 5).
Raw material Inventories The Manufacturing sector inventories index grew for the eight consecutive months in November 2017. At 57.1 points, the index grew at a faster rate when compared to its level in October 2017. Eleven of the 16 subsectors recorded growth, 3 remained unchanged while 2 subsectors recorded decline in raw material inventories (Fig. 8 and Table 6).
Non-Manufacturing PMI Report Business activity, new orders, employment and inventories growing at a faster rate in November 2017
The composite PMI for the non-manufacturing sector stood at 57.6 points in November 2017, indicating growth in the Non-manufacturing PMI for the seventh consecutive month.
Fifteen of the 18 non-manufacturing subsectors recorded growth in the following order: agriculture; public administration; utilities; health care & social assistance; finance & insurance; educational services; water supply, sewage & waste management; transportation & warehousing; repair, maintenance/washing of motor vehicles…; arts, entertainment & recreation; information & communication; wholesale trade; real estate, rental & leasing; accommodation & food services and electricity, gas, steam & air conditioning supply.
The management of companies; Construction and professional, scientific, & technical services sub sectors recorded contraction in the review period (Fig. 10 and Table 7).
Business Activity At 59.4 points, the business activity index grew for the eighth consecutive month, indication growth in business activity in November 2017. The index grew at a faster rate, when compared to its level in the previous month. Fifteen subsectors recorded growth in business activity, while 3 declined in the review month (Table 8).
New Orders New orders index at 58.4 points grew in November 2017 for the eight consecutive months. Of the 18 subsectors, 14 reported growth, 1 remained unchanged while 3 recorded declines (Table 9).
Employment Level The employment level Index for the non-manufacturing sector stood at 54.6 points, indicating growth in employment for the seventh consecutive month. Thirteen subsectors recorded growth in the review month, 1 remained unchanged while 4 recorded declines (Table 10).
Non-manufacturing Inventory At 58.0 points, nonmanufacturing inventory index grew for the seventh consecutive month, indicating growth in inventories in the review period. Thirteen subsectors recorded higher inventories, 1 remained unchanged, while 4 subsectors recorded lower inventory in November, 2017 (Table 11)