Wednesday, February 28, 2018 /4:50PM /CBN
The February 2018 PMI survey was conducted by the Statistics Department of the Central Bank of Nigeria during the period February 12 - 20, 2018. The respondents were purchasing and supply executives of manufacturing and non-manufacturing organizations in 27 locations in Nigeria (Fig. 1).
The Bank makes no representation regarding the individual companies, other than the information they have 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 non-manufacturing 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.
Manufacturing PMI Report
The Manufacturing PMI in the month of February stood at 56.3 index points, indicating expansion in the manufacturing sector for the eleventh consecutive month. (Fig. 3 and Table 1). The index however grew at a slower rate, when compared to that in the previous month.
Of the 15 subsectors surveyed, 10 reported growth in the review month in the following order: Plastics & rubber products; textile, apparel, leather & footwear; appliances & components; paper products; primary metal; petroleum & coal products; chemical & pharmaceutical products; food, beverage & tobacco products; electrical equipment and furniture & related products.
The remaining 5 subsectors contracted in the following order: printing & related support activities; cement; nonmetallic mineral products; fabricated metal products; and transportation equipment.
At 57.8 points, the production level index for the manufacturing sector grew for the twelfth consecutive month in February 2018. The index indicated a slower growth in the current month, when compared to its level in the preceding month. Six of the 15 manufacturing subsectors recorded increase in production level, 6 remained unchanged, while the remaining 3 recorded declines in production level during the review month (Fig. 4 and Table 2).
At 55.6 points, the new orders index grew for the eleventh consecutive month, indicating increase in new orders in February 2018. Eight subsectors reported growth, 4 remained unchanged while 3 contracted in the review month (Fig. 5 and Table 3).
Supplier Delivery Time
The manufacturing supplier delivery time index stood at 57.0 points in February 2018, indicating faster supplier delivery time for the ninth consecutive month. Six subsectors recorded improved suppliers’ delivery time, 7 remained unchanged while 2 subsectors recorded delayed delivery time (Fig. 6 and Table 4).
The employment level index in February 2018 stood at 53.9 points, indicating growth in employment level for the tenth consecutive month. Of the 15 subsectors, 6 subsectors increased their employment level, 2 remained unchanged while 7 reduced their employment level in the review month (Fig. 7 and Table 5).
Raw material Inventories
The Manufacturing sector inventories index grew for the eleventh consecutive month in February 2018. At 58.1 points, the index grew at a faster rate when compared to its level in the previous month. Nine of the 15 subsectors recorded growth, 5 remained unchanged while 1 recorded decline in raw material inventories (Fig. 8 and Table 6).
Non-Manufacturing PMI Report
Business activity and new orders, growing at a slower rate; employment and inventories growing at a faster rate in February 2018
The composite PMI for the non-manufacturing sector stood at 56.1 points in February 2018, indicating expansion in the Non-manufacturing PMI for the tenth consecutive month.
Eleven of the 16 subsectors recorded growth in the following order: information & communication; wholesale/retail trade; educational services; management of companies; utilities; finance & insurance; agriculture; health care & social assistance; construction; electricity, gas, steam & air conditioning supply; and professional, scientific, & technical services.
The real estate rental & leasing remained unchanged, while the public administration; water supply, sewage & waste management; accommodation & food services; and transportation & warehousing subsectors recorded contraction in the review period (Fig. 10 and Table 7).
At 55.6 points, the business activity index grew for the eleventh consecutive month, indicating expansion in business activity in February 2018. The index grew at a slower rate, when compared to its level in the previous month. Nine subsectors recorded growth in business activity, 3 sectors remain unchanged, while 4 declined in the review month (Table 8).
At 53.7 points, new orders index grew in February 2018 for the eleventh consecutive month. Of the 16 subsectors, 8 reported growth, 1 remained unchanged while 7 recorded declines (Table 9).
The employment level Index for the non-manufacturing sector stood at 55.3 points, indicating growth in employment for the tenth consecutive month. Nine subsectors recorded growth in the review month, 4 remained unchanged while 3 recorded declines (Table 10).
At 59.8 points, non-manufacturing inventory index grew for the tenth consecutive month, indicating growth in inventories in the review period. Twelve subsectors recorded higher inventories, 2 remained unchanged, while 2 subsectors recorded lower inventory in February, 2018 (Table 11).