Manufacturing sector expanded slowly in January ―CBN
MANUFACTURING purchasing managers’ index (PMI) stood at 57.3 index points in January 2018, indicating expansion in the manufacturing sector for the tenth consecutive month.
According to Central Bank of Nigeria, the index, however, grew at a slower rate, when compared to that in the previous month.
However, the electrical equipment; chemical & pharmaceutical products; and transportation equipment subsectors contracted in the review month.
The manufacturing sector is computed from four diffusion indices: business activity, level of 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 contracting. The subsectors reporting growth are listed in the order of highest to lowest growth, while those reporting contractions are listed in the order of the highest to the lowest contraction.
Manufacturing PMI Report Production level, new orders, supplier delivery time, employment level and inventories growing at a slower rate in January 2018.
At 59.6 points, the January 2018 production level index for the manufacturing sector grew for the eleventh consecutive month.
The index indicated a slower growth in the current month when compared to its level in the preceding month. Eleven of the 16 manufacturing subsectors recorded expansion in production level, 3 remained unchanged, while the remaining 2 recorded declines in production level during the review month.
At 58.3 points, the January 2018 new orders index grew for the eighth consecutive month. The index indicated a slower growth in the current month when compared to its level in December 2017.
Ten subsectors reported growth, 4 remained unchanged while 2 contracted in the review.
The manufacturing supplier delivery time index stood at 56.8 points in January 2018, indicating improved supplier delivery time for the eighth consecutive month.
Seven subsectors recorded improved suppliers’ delivery time, 4 remained unchanged while 5 subsectors recorded delayed delivery time.
The employment level index in January 2018 stood at 53.3 points, indicating growth in employment level for the ninth consecutive month.
Of the 16 subsectors, 8 subsectors increased their employment level, 4 remained unchanged while 4 subsectors reduced their employment level in the review month.
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The Manufacturing sector inventories index in January 2018 stood at 57.7 points indicating growth in raw material inventories for the tenth consecutive month.
Eleven of the 16 subsectors recorded growth, 1 remained unchanged while 4 subsectors recorded decline in raw material inventories.