Nigeria’s economy continues its ascendancy as Manufacturing Purchasing Manager’s Index (PMI) stood at 55.3 index points in September, indicating expansion in the manufacturing sector for the sixth consecutive month, according to data from Central Bank of Nigeria (CBN).
A total of 1,625 responses were received from a sample of 1,950 respondents, representing a response rate of 83.3 per cent.
Production level, new orders, supplier delivery time, employment level and raw material inventories growing at a faster rate in September 2017
Fourteen of the sixteen 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.
The primary metal and petroleum & coal products subsectors contracted in the review month.
The production level index for the manufacturing sector grew for the seventh consecutive month in September 2017. At 58.8 points, the index indicated an increase in production at a faster rate, when compared to its level in the preceding month.
Thirteen of the sixteen manufacturing subsectors recorded increase, while three subsectors declined during the review month (Fig. 4 and Table 2)
At 53.5 points, the new orders index grew for the sixth consecutive month. Ten subsectors reported growth, while six subsectors contracted in the month of September 2017.
The supplier delivery time index for the manufacturing sector, at 55.4 points in September 2017, rose for the fourth consecutive month. Twelve subsectors recorded improved suppliers’ delivery time, two remained unchanged while two subsectors recorded delayed delivery time (Fig. 6 and Table 4).
The employment level index in September 2017 stood at 52.8 points, indicating growth in employment level for the fifth consecutive month. Of the sixteen subsectors, six recorded growth, four remained unchanged while the other six subsectors recorded decline in employment level.
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 sixteen subsectors recorded growth, one remained unchanged and the remaining three subsectors recorded decline in inventories.
Business activity, new orders, employment level and inventory growing at a faster rate in September 2017
The composite PMI for the non-manufacturing sector stood at 54.9 points in September 2017, indicating growth in Non-manufacturing PMI for the fifth consecutive month.
Of the eighteen nonmanufacturing subsectors, fifteen recorded growth in the following order: utilities; agriculture; health care & social assistance; finance & insurance; transportation & warehousing; electricity, gas, steam & air conditioning supply; repair, maintenance/washing of motor vehicles; public administration; wholesale/retail trade; water supply, sewage & waste management; educational services; arts, entertainment & recreation; information & communication; accommodation & food services; real estate rental & leasing.
The construction; management of companies; and professional, scientific & technical services sub sectors recorded contraction in the review period.
The business activity index rose marginally to 56.8 points in September 2017, indicating growth for the sixth consecutive month.
The index grew at a faster rate, when compared to its level in the preceding month. Fourteen subsectors recorded growth in business activity, two remained unchanged and two declined in the review month.
New orders index at 55.4 points grew in September 2017 for the sixth consecutive month. Of the eighteen subsectors, thirteen reported growth; three remained unchanged while two recorded declines.
The employment level Index for the nonmanufacturing sector stood at 54.7 points, indicating growth in employment for the fifth consecutive month. Fifteen subsectors recorded growth in the review month, while the remaining three subsectors declined.
At 52.9 points, non-manufacturing inventory index grew for the fifth consecutive month, indicating growth in inventories in the review period.
Twelve subsectors recorded higher inventory, three remained unchanged, while three subsectors recorded lower inventory in September.