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Manufacturing PMI Stands at 47.7% in March 2017 from 44.6% in February 2017 - CBN

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Friday, March 31, 2017 6:25 PM/ CBN 

Data and Method of Presentation
The Manufacturing and Non-Manufacturing PMI Report on businesses is derived from the data compiled from purchasing and supply executives. Survey responses indicate whether there is change or no change in the level of business activities in the current month compared with the previous month.

For each of the indicators measured, this report shows the diffusion index of the responses. The diffusion index is computed as the percent of positive responses plus one-half of the percent of those reporting no change. The composite PMI is then computed as the weighted average of five diffusion indices for manufacturing sector: 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 non-manufacturing sector is computed from four diffusion 2 indices: business activity, 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 declining.

The sub-sectors reporting growth are listed in the order of highest to lowest growth. For the sub-sectors reporting contraction/decline, they are listed in the order of the highest to the lowest decline.

Manufacturing PMI Report

Production level expanding from expansion, new orders declining at a slower rate, supplier delivery time improving from worsening condition, employment level declining at a slower rate, and raw material inventories declining at a slower rate

 


 

The Manufacturing PMI stood at 47.7 index points in March 2017, indicating declines in the manufacturing sector for the third consecutive month (Fig. 2 and Table 1) but at a slower rate.

Thirteen of the sixteen sub-sectors reported declines in the review month in the following order: primary metal; transportation equipment; plastics & rubber products; electrical equipment; paper products; printing & related support activities; petroleum & coal products; nonmetallic mineral products; furniture & related products; cement; fabricated metal products; computer & electronic products; and chemical & pharmaceutical products.

The appliances & components; food, beverage & tobacco products; and textile, apparel, leather & footwear sub sectors reported expansion in the review period.

 




Production Level
The production level index for manufacturing sector expanded in March 2017. The index at 50.8 points indicated an expansion in production level as compared to contraction in the previous month.

Seven manufacturing sub-sectors recorded increase in production level during the review month in the following order: appliances & components; petroleum & coal products; textile, apparel, leather & footwear; food, beverage & tobacco products; cement; computer & electronic products; and furniture & related products.

The nonmetallic mineral products sub-sector remained unchanged, while the primary metal; transportation equipment; electrical equipment; plastics & rubber products; paper products; chemical & pharmaceutical products; printing & related support activities; and fabricated metal products recorded declines in production in March 2017.(Table 2).

 


 

New Orders
At 45.6 points, the index declined for the third consecutive month but at a slower rate when compared to the level achieved in February 2017.

Twelve sub-sectors recorded declines in the following order: primary metal; plastics & rubber products; petroleum & coal products; printing & related support activities; electrical equipment; transportation equipment; computer & electronic products; paper products; fabricated metal products; furniture & related products; cement; and nonmetallic mineral products.

The remaining four sub-sectors grew in the following order: appliances & components; food, beverage & tobacco products; textile, apparel, leather & footwear; and chemical & pharmaceutical products (Table 3).

 


 

Supplier Delivery Time
At 51.3 index points, the supplier delivery time index for the manufacturing sub-sectors improved in March 2017.

Nine sub-sectors recorded improved suppliers’ delivery time in the following order: computer & electronic products; electrical equipment; paper products; plastics & rubber products; chemical & pharmaceutical products; primary metal; printing & related support activities; food, beverage & tobacco products; and fabricated metal products.

The appliances & components; petroleum & coal products; and transportation equipment sub-sector remained unchanged, while the cement; textile, apparel, leather & footwear; furniture & related products; and nonmetallic mineral products sub-sectors recorded declines in delivery time in March 2017 (Table 4).


 

Employment Level

Employment level index in March 2017 stood at 43.6 points, indicating a decline in employment level for twenty-five consecutive months.

However, the index declined at a slower rate when compared with the level in the preceding month.

Of the sixteen sub-sectors, fifteen recorded declines in the following order: electrical equipment; primary metal; petroleum & coal products; transportation equipment; nonmetallic mineral products; cement; chemical & pharmaceutical products; paper products; furniture & related products; plastics & rubber products; computer & electronic products; fabricated metal products; textile, apparel, leather & footwear; printing & related support activities; and food, beverage & tobacco products.

The appliances & components sub-sector recorded growth during the review period (Table 5).


 

Raw Materials Inventory
At 49.1 points, the raw materials inventory index declined for the third consecutive months.

Of the sixteen sub-sectors, nine recorded declines in raw materials inventories in the order: paper products; plastics & rubber products; nonmetallic mineral products; computer & electronic products; printing & related support activities; petroleum & coal products; electrical equipment; furniture & related products; and chemical & pharmaceutical products.

The cement and primary metal sub-sectors remained unchanged, while the remaining five sub-sectors recorded increase in inventories in the order: transportation equipment; appliances & components; textile, apparel, leather & footwear; food, beverage & tobacco products; and fabricated metal products (Table 6).

 


 

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