Manufacturing PMI drops to 57.1 points in February
The Manufacturing Purchasing Managers Index (PMI) has dropped further to 57.1 index points in February from 58.index points reported in January, the Central Bank of Nigeria (CBN) PMI report has revealed.
This development in February indicated expansion in the manufacturing sector for the 23rd consecutive month.
The report showed that the index grew at a slower rate when compared to the index in the previous month.
In fact, 13 of the 14 subsectors surveyed reported growth in the review month in the following order: petroleum & coal products; electrical equipment; transportation equipment; plastics & rubber products; food, beverage & tobacco products; textile, apparel, leather & footwear; nonmetallic mineral products;
chemical & pharmaceutical products; furniture & related products; printing & related support activities; cement; fabricated metal products; and paper products. The primary metal subsector recorded decline in the review period.
The apex bank had reported 61.1 index points Manufacturing PMI for December 2018 attributable to increased foreign exchange intervention.
Also, the Non-Manufacturing PMI dropped to 58.4 basis points in February 2019 as against 60.1 index points and 62.3 1 index points reported in January and December 2018 respectively.
The apex bank with its survey used production level, new orders, supplier delivery time, employment level and inventories to measure growth in the manufacturing sector.
On production level, the report said, “At 57.5 Index points, the production level index for the manufacturing sector grew for the 24th consecutive month in February 2019.
“The index indicated slower growth in the current month when compared to its level in the preceding month. Nine of the 14 manufacturing subsectors recorded increased production level, three remained unchanged while two recorded decline.”
According to CBN, New Orders stood at 56. Index 9 points.
The report said: “The new orders index grew for the 23rd consecutive month, indicating an increase in new orders in February 2019.
“20 subsectors reported growth, one remained unchanged, while one contracted in the review month.
“The manufacturing supplier delivery time index stood at 58.2 points in February 2019, indicating slower supplier delivery time. The index has recorded growth for twenty-one consecutive months.
“All 14 subsectors recorded improved suppliers’ delivery time in the review period,” the report explained supplier delivery time for February.
On employment Level, the level index for February 2019 stood at 56.3 points, indicating growth in employment level for the 22nd consecutive month.
“Of the 14 subsectors, eight reported increased employment level, five reported unchanged employment level while one reported decreased employment in the review month.
Finally, On CBN report on raw material Inventories said, the “Manufacturing sector inventories index grew for the 23rd consecutive month in February 2019.
“At 56.2 points, the index grew at a slower rate when compared to its level in January 2019. Nine of the 14 subsectors recorded growth, one recorded unchanged, while 4 reported declined raw material inventories.
