CBN’s Manufacturing PMI records expansion in June

Latest report from the Central Bank of Nigeria has indicated  that the Manufacturing Purchasing Managers’ Index (PMI) stood at 52.9 index points in June 2017, amounting to expansion in the manufacturing sector for the third consecutive month.

According to the report, twelve of the 16 sub-sectors reported growth in the review month in the following order: computer & electronic products; paper products; plastics & rubber products; primary metal; transportation equipment; petroleum & coal products; appliances & components; textile, apparel, leather & footwear; furniture & related products; electrical equipment; food, beverage & tobacco products and fabricated metal products.

But the remaining four sub-sectors declined in the order: nonmetallic mineral products; cement; chemical & pharmaceutical products and printing & related support activities.

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 report showed that production level index for manufacturing sector grew for the fourth consecutive month in June 2017. The index at 58.2 points indicated an increase in production but at a slower rate, when compared to the level attained in the previous month. Fourteen manufacturing sub-sectors recorded increase in production level during the review month.

Furthermore, employment level index in June 2017 stood at 51.1 points, indicating growth in employment level for the second consecutive month, while at 51.0 points, new orders index grew for the third consecutive month. Eight sub-sectors reported growth in new orders.

Also, the apex bank indicated that the business activity index rose to 57.0 points in June 2017 for the third consecutive month. The index grew at a faster rate, when compared to its level in the previous month. Thirteen sub-sectors recorded growth.

The June 2017 PMI was conducted by the Statistics Department of the Central Bank of Nigeria, during the period June 12 – 16, 2017. 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 1,796 responses were received from a sample of 1,950 respondents, representing a response rate of 92.1 per cent.