Wednesday, August 01, 2018 01:54 PM / CBN
The July 2018 PMI survey was conducted by the Statistics Department of the Central Bank of Nigeria during the period July 12 - 20, 2018. The respondents were purchasing and supply executives of manufacturing and non-manufacturing organizations in all 36 states in Nigeria and the Federal Capital Territory (FCT) (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, namely: 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, namely: 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 July stood at 56.8 index points, indicating expansion in the manufacturing sector for the sixteenth consecutive month. (Fig. 3 and Table 1).
The index however grew at a slower rate when compared to the index in the previous month. Of the 14 subsectors surveyed, 13 reported growth in the review month in the following order: petroleum & coal products; printing & related support activities; paper products; electrical equipment; primary metal; furniture & related products; non-metallic mineral products; transportation equipment; textile, apparel, leather & footwear; chemical & pharmaceutical products; food, beverage & tobacco products; cement; and fabricated metal products. The Plastics & rubber products subsector declined in the review month.
At 59.0 points, the production level index for the manufacturing sector grew for the seventeenth consecutive month in July 2018. The index indicated a slower growth in the current month, when compared to its level in the preceding month. Twelve of the 14 manufacturing subsectors recorded increase in production level, while 2 remained unchanged (Fig. 4 and Table 2).
At 55.8 points, the new orders index grew for the sixteenth consecutive month, indicating increase in new orders in July 2018. Twelve subsectors reported growth, while 2 contracted in the review month (Fig. 5 and Table 3).
Supplier Delivery Time
The manufacturing supplier delivery time index stood at 56.8 points in July 2018, indicating faster supplier delivery time for the fourteenth consecutive month. Nine subsectors recorded improved suppliers’ delivery time, 3 remained unchanged while 2 contracted (Fig. 6 and Table 4).
The employment level index in July 2018 stood at 55.0 points, indicating growth in employment level for the fifteenth consecutive month. Of the 14 subsectors, 9 reported increased employment level, 3 remained unchanged while 2 reported reduced employment level in the review month (Fig. 7 and Table 5).
Raw material Inventories
The Manufacturing sector inventories index grew for the sixteenth consecutive month in July 2018. At 57.4 points, the index grew at a slower rate when compared to its level in the previous month. Twelve of the 14 subsectors recorded growth, while 2 recorded decline in raw material inventories (Fig. 8 and Table 6).