Moderate expansion in manufacturing in October, PMI index shows—CBN

The purchasing manager index, a survey conducted by the Central Bank of Nigeria Statistics Department has indicated that production level, new orders, supplier delivery time, employment level and raw materials inventories grew at a faster rate in the month of October 2019. The Manufacturing PMI in the month of October stood at 58.2 index points, indicating expansion in the manufacturing sector for the thirty-first consecutive month. The index grew at a faster rate when compared to the index in September. Thirteen of the 14 surveyed sub-sectors reported growth in the review month in the following order: petroleum & coal products; cement; electrical equipment; furniture & related products; fabricated metal products; printing & related support activities; textile, apparel, leather & footwear; food, beverage & tobacco products; nonmetallic mineral products; plastics & rubber products; primary metal; chemical & pharmaceutical products; and transportation equipment. The paper products sub-sector recorded decline in the review period.

According to the survey report at 59.3 points, the production level index for manufacturing sector grew for the thirty-second consecutive month in October 2019. The index indicated a faster growth in the current month, when compared to its level in September 2019. Eleven of the 14 manufacturing sub-sectors recorded increased production level, while 3 recorded decline.

The report said that new orders at 57.9 points, the index grew for the thirty-first consecutive month, indicating increase in new orders in October 2019. The index grew at a faster rate, when compared to its level in September 2019. Nine sub-sectors reported growth, 2 remained unchanged, while 3 contracted in the review month  It also said that the manufacturing supplier delivery time index stood at 58.6 points in October 2019, indicating faster supplier delivery time. The index has recorded growth for twenty-ninth consecutive months. Nine of the 14 sub-sectors recorded improved suppliers’ delivery time, while 5 remained unchanged in the review period.

The report further said that the employment level index for October 2019 stood at 56.8 points, indicating growth in employment level for the thirtieth consecutive month. Of the 14 sub-sectors, 11 reported increased employment level, 1 reported unchanged employment level while 2 reported decreased employment in the review month while Raw material Inventories in the Manufacturing sector inventories index grew for the thirty-first consecutive month in October 2019. At 58.6 points, the index grew at a faster rate when compared to its level in September 2019. Ten of the 14 sub-sectors recorded growth, 2 remained unchanged, while 2 reported declined raw material inventories in the review month.

The PMI survey showed that business activity, new orders and inventories grew at a faster rate, while employment level grew at a slower rate in October 2019. It said “The composite PMI for the non- manufacturing sector stood at 58.2 points in October 2019, indicating expansion in the Non-manufacturing PMI for the thirtieth consecutive month. The index grew at a faster rate when compared to its level in September 2019. Fifteen of the 17 surveyed sub-sectors recorded growth in the following order: repair, maintenance/washing of motor vehicles; transportation & warehousing; real estate rental & leasing; agriculture; utilities; finance & insurance; accommodation & food services; wholesale/retail trade; educational services; construction; information & communication; professional, scientific, & technical services; water supply, sewage & waste management; health care & social assistance; and electricity, gas, steam & air conditioning supply. The management of companies; and arts, entertainment & recreation sub-sectors contracted in the review period.

“At 57.9 points, the business activity index grew for the thirty-first consecutive month, indicating expansion in non- manufacturing business activity in October 2019. Thirteen subsectors recorded growth in business activity, 3 remained unchanged, while 1 declined in the review month. At 58.5 points, new orders index grew for the thirty-first consecutive month in October 2019. Thirteen of the 17 surveyed sub-sectors recorded growth in new orders, 1 remained unchanged, while 3 recorded decline during the review period. The employment level Index for the non-manufacturing sector stood at 57.1 points, indicating growth in employment for the thirtieth  consecutive month. Fourteen growth in remained unchanged, while 2 sub-sectors declined sub-sectors employment recorded level in the review period. At 59.2 points, non-manufacturing inventory index grew for the thirtieth consecutive month, indicating growth in inventories in the review period. Of the 17 surveyed subsectors, 15 recorded higher inventories, 1 remained unchanged, while 1 recorded declining inventories in October 2019”.

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