Manufacturing PMI Stands at 57.3% in January 2018 from 59.3% in December 2017

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Thursday, February 01, 2018 /1:40 PM /CBN 

The January 2018 PMI survey was conducted by the Statistics Department of the Central Bank of Nigeria during the period January 15 - 19, 2018. The respondents were purchasing and supply executives of manufacturing and non-manufacturing organizations in 20 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.
 
 

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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.

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The Manufacturing PMI in the month of January stood at 57.3 index points indicating expansion in the manufacturing sector for the tenth 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 16 subsectors, 13 reported growth in the review month in the following order: computer & electronic products; nonmetallic mineral products; cement; textile, apparel, leather & footwear; printing & related support activities; appliances & components; primary metal; petroleum & coal products; food, beverage & tobacco products; furniture & related products; paper products; fabricated metal products; plastics & rubber products. The electrical equipment; chemical & pharmaceutical products; and transportation equipment subsectors contracted in the review month.


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Production Level
 
At 59.6 points, the January 2018 production level index for the manufacturing sector grew for the eleventh consecutive month. The index indicated a slower growth in the current month, when compared to its level in the preceding month. Eleven of the 16 manufacturing subsectors recorded expansion in production level, 3 remained unchanged, while the remaining 2 recorded declines in production level during the review month (Fig. 4 and Table 2). 

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New Orders
 
At 58.3 points, the January 2018 new orders index grew for the eighth consecutive month. The index indicated a slower growth in the current month, when compared to its level in December 2017. Ten subsectors reported growth, 4 remained unchanged while 2 contracted in the review month (Fig. 5 and Table 3).

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Supplier Delivery Time
 
The manufacturing supplier delivery time index stood at 56.8 points in January 2018, indicating improved supplier delivery time for the eighth consecutive month. Seven subsectors recorded improved suppliers’ delivery time, 4 remained unchanged while 5 subsectors recorded delayed delivery time (Fig. 6 and Table 4). 

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Employment Level
 
The employment level index in January 2018 stood at 53.3 points, indicating growth in employment level for the ninth consecutive month. Of the 16 subsectors, 8 subsectors increased their employment level, 4 remained unchanged while 4 subsectors reduced their employment level in the review month (Fig. 7 and Table 5). 

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Raw material Inventories
 
The Manufacturing sector inventories index in January 2018 stood at 57.7 points indicating growth in raw material inventories for the tenth consecutive month. Eleven of the 16 subsectors recorded growth, 1 remained unchanged while 4 subsectors recorded decline in raw material inventories (Fig. 8 and Table 6). 

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Non-Manufacturing PMI Report
 
Business activity, new orders, employment and inventories growing at a slower rate in January 2018 

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The composite PMI for the nonmanufacturing sector stood at 58.5 points in January 2018, indicating expansion in the Nonmanufacturing PMI for the ninth consecutive month.
 

Sixteen of the 18 non-manufacturing subsectors recorded growth in the following order: public administration; repair, maintenance/washing of motor vehicles; educational services; water supply, sewage & waste management; transportation & warehousing; real estate rental & leasing; arts, entertainment & recreation; information & communication; agriculture; finance & insurance; professional, scientific, & technical services; wholesale/retail trade; health care & social assistance; electricity, gas, steam & air conditioning supply; utilities; construction; and management of companies.

The management of companies remained unchanged, while the accommodation & food services subsector recorded contraction in the review period (Fig. 10 and Table 7).


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Business Activity
 
At 61.3 points, the January 2018 business activity index grew for the tenth consecutive month, indicating expansion in business activity. The index grew at a slower rate, when compared to its level in the previous month. Sixteen subsectors recorded growth in business activity, 1 sector remain unchanged, while 1 declined in the review month (Table 8).

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New Orders
 
At 58.2 points, new orders index grew in January 2018 for the tenth consecutive month. Of the 18 subsectors, 13 reported growth, 2 remained unchanged while 3 recorded declines (Table 9).

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Employment Level
 
The employment level Index for the non-manufacturing sector stood at 55.1 points in January 2018, indicating growth in employment for the ninth consecutive month. Thirteen subsectors recorded growth in the review month, 3 remained unchanged while 2 recorded declines (Table 10).

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Non-manufacturing Inventory
 
At 59.5 points, non-manufacturing inventory index grew for the ninth consecutive month, indicating growth in inventories in the review period. Fifteen subsectors recorded higher inventories, 1 remained unchanged, while 2 subsectors recorded lower inventory in December, 2017 (Table 11). 

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