PMI hits one-year high at 59.3 points, says CBN
The Central Bank of Nigeria’s Purchasing Managers’ Index increased to 59.3 index points in December, the highest in 2017, PMI Survey Report released by the CBN on Wednesday showed.
The latest figure was far above the PMI of 55.9 index points reported in November, and 55 index points in October as well as 55.3 index points in September.
The PMI survey indicates the economic health of the manufacturing sector. The year 2017 opened with a PMI of 48.2 index points in January.
The CBN said there was expansion in the manufacturing sector for nine consecutive months last year, attributing it to stability in the foreign exchange market.
The apex bank based its composite PMI for the manufacturing sector on five indicators, namely: production, new orders, supplier delivery time, employment level and raw materials inventory.
The CBN’s PMI survey showed that 15 of the 16 subsectors reported growth in December especially in areas like petroleum and coal products; and textile, apparel, leather and footwear.
Other subsectors that increased in the PMI were: cement; transportation equipment; paper products; food, beverage and tobacco products; furniture and related products; plastics and rubber products; non-metallic mineral products; printing and related support activities; appliances and components; chemical and pharmaceutical products; fabricated metal products; primary metal and electrical equipment.
The CBN’s PMI data however, showed that the computer and electronic product sectors contracted in the month under review.
According to the regulator’s PMI survey report, the production level closed at 63.2 points , the tenth consecutive month growth, in December.
The report read in part, “The index indicated an increase in production in the current month, when compared to its level in the preceding month. Eleven of the 16 manufacturing subsectors recorded increase in production level, three remained unchanged, while the remaining two recorded declines in production level during the review month.”
The report on new orders stated that the index grew to 60 points in December, a nine consecutive monthly increase.
“Thirteen subsectors reported growth, two remained unchanged while one contracted in the review month,” the CBN PMI report said.
Also, the manufacturing supplier delivery time index stood at 57.4 points in December 2017, indicating faster supplier delivery time for the seventh consecutive month.
“Eleven subsectors recorded improved suppliers’ delivery time, one remained unchanged while four subsectors recorded delayed delivery time,” the survey report said.
On employment level, the survey report said, “The employment level index in December 2017 stood at 53.9 points, indicating growth in employment level for the eighth consecutive month.
“Of the 16 subsectors, nine subsectors increased their employment level, three remained unchanged while fourth subsectors reduced their employment level in the review month.
It added, “The manufacturing sector inventories index grew for the ninth consecutive months in December 2017. At 61.1 points, the index grew at a faster rate when compared to its level in the previous months.”