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Manufacturing PMI Stands at 55.3% in September 2017 from 53.6%% in August 2017 - CBN

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Friday, September 29, 2017 / 11:40 AM /CBN

Introduction
The September 2017 PMI was conducted by the Statistics Department of the Central Bank of Nigeria during the period September 11 - 15, 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 1,625 responses were received from a sample of 1,950 respondents, representing a response rate of 83.3 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.



Map of Nigeria with 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 one 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, 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 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. 

Manufacturing PMI Report
Production level, new orders, supplier delivery time, employment level and raw material inventories growing at a faster rate in September 2017 



The Manufacturing PMI stood at 55.3 index points in September 2017, indicating expansion in the manufacturing sector for the sixth consecutive month (Fig. 3 and Table 1).  

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

The primary metal and petroleum & coal products subsectors contracted in the review month. 



Production Level
The production level index for the manufacturing sector grew for the seventh consecutive month in September 2017. At 58.8 points, the index indicated an increase in production at a faster rate, when compared to its level in the preceding month. 

Thirteen of the sixteen manufacturing subsectors recorded increase, while three subsectors declined during the review month (Fig. 4 and Table 2)



New Orders
At 53.5 points, the new orders index grew for the sixth consecutive month. Ten subsectors reported growth, while six subsectors contracted in the month of September, 2017 (Fig. 5 and Table 3).



Supplier Delivery Time
The supplier delivery time index for the manufacturing sector, at 55.4 points in September 2017, rose for the fourth consecutive month. Twelve subsectors recorded improved suppliers’ delivery time, two remained unchanged while two subsectors recorded delayed delivery time (Fig. 6 and Table 4).



Employment Level
The employment level index in September 2017 stood at 52.8 points, indicating growth in employment level for the fifth consecutive month. Of the sixteen subsectors, six recorded growth, four remained unchanged while the other six subsectors recorded decline in employment level (Fig. 7 and Table 5). 



Raw Materials Inventories
At 56.4 points, raw materials inventories index grew for the sixth consecutive month, and at a faster rate when compared to its level in August 2017. Twelve of the sixteen subsectors recorded growth, one remained unchanged and the remaining three subsectors recorded decline in inventories (Fig. 8 and Table 6).



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



The composite PMI for the non-manufacturing sector stood at 54.9 points in September 2017, indicating growth in Non-manufacturing PMI for the fifth consecutive month. 

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

The construction; management of companies; and professional, scientific & technical services sub sectors recorded contraction in the review period (Fig. 10 and Table 7).



Business Activity
The business activity index rose marginally to 56.8 points in September 2017, indicating growth for the sixth consecutive month.

The index grew at a faster rate, when compared to its level in the preceding month. Fourteen subsectors recorded growth in business activity, two remained unchanged and two declined in the review month (Fig 11 and Table 8).



New Orders

New orders index at 55.4 points grew in September 2017 for the sixth consecutive month. Of the eighteen subsectors, thirteen reported growth; three remained unchanged while two recorded declines (Fig. 12 and Table 9).



Employment Level
The employment level Index for the nonmanufacturing sector stood at 54.7 points, indicating growth in employment for the fifth consecutive month. Fifteen subsectors recorded growth in the review month, while the remaining three subsectors declined (Fig. 13 and Table 10).



Non-manufacturing Inventory
At 52.9 points, non-manufacturing inventory index grew for the fifth consecutive month, indicating growth in inventories in the review period.

Twelve subsectors recorded higher inventory, three remained unchanged, while three subsectors recorded lower inventory in September, 2017 (Fig. 14 and Table 11).



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