The September 2017 Purchasing Managers Index (PMI) conducted by the Statistics Department of the Central Bank of Nigeria (CBN) during the period September 11 -15, 2017, has shown that PMI stood at 55.3 percent in September from 53.6per cent in August 2017.
The index points in September 2017 indicate expansion in the manufacturing sector for the sixth consecutive month.
The Manufacturing and Non-Manufacturing PMI Report on businesses are based on survey responses indicating the changes in the level of business activities in the current month compared with the preceding month.
The composite PMI for the manufacturing sector is computed as the weighted average of five diffusion indices: production level, new orders, supplier delivery time, employment level and raw materials inventory, with assigned weights of 25 percent, 30per cent, 15 percent 10 percent and 20 percent respectively.
The respondents were purchasing and supply executives of manufacturing and non-manufacturing organisations in 13 locations in Nigeria (two states in each geopolitical zone and the Federal Capital Territory). A total of 1,625 responses were received from a sample of 1,950 respondents, representing a response rate of 83.3 percent.
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.
Production level, new orders, supplier delivery time, employment level and raw material inventories grew at a faster rate in September 2017.
According to the report, 14 of the 16 subsectors reported growth in the review month in the following order: appliances & components; electrical equipment; chemical & pharmaceutical products; nonmetallic mineral products; printing & related support activities; plastics & rubber products; food, beverage & tobacco products; furniture & related products; transportation equipment; cement; paper products; computer & electronic products; textile, apparel, leather & footwear and fabricated metal products.
At 56.4 points, raw materials inventories index grew for the sixth consecutive month, and at a faster rate when compared to its level in August 2017.
Twelve of the 16 subsectors recorded growth, one remained unchanged and the remaining three subsectors recorded decline in inventories.
Business activity, new orders, employment level and inventory grew at a faster rate in September 2017.
The business activity index rose marginally to 56.8 points in September 2017, indicating growth for the sixth consecutive month.
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