The monthly Purchasing Managers’ Index (PMI) of the Central Bank of Nigeria (CBN) for the month of August released on Wednesday has shown that the Manufacturing PMI declined to 42.1 index points in August 2016, compared to 44.1 in the preceding month, implying that the manufacturing sector declined at a faster rate during the review period.
The Manufacturing and Non-manufacturing PMI Report on businesses is based on data compiled from purchasing and supply executives. Survey responses indicate either there is change or no change in the level of business activities in the current month compared with the previous month. For each of the indicators measured, this report shows the diffusion index of the responses. The diffusion index is computed as the percent of positive responses plus one-half of the percent of those reporting no change.
“Of the sixteen manufacturing sub-sectors, fifteen recorded decline in the review month in the following order: non-metallic mineral products; transportation equipment; petroleum &coal products; fabricated metal products; furniture & related products; cement; appliances & components; printing & related support activities; paper products; computer & electronic products; food, beverage & tobacco products; primary metal; textile, apparel, leather & footwear; plastics & rubber products; and chemical & pharmaceutical products. The electrical equipment sub-sector remained unchanged in the review period”.
“At 40.5 index points, the production level index for manufacturing sector declined for the eighth consecutive month. It declined at a faster rate than that recorded in July 2016. All the sixteen manufacturing sub-sectors recorded declines in production level during the review month in the following order: appliances & components; plastics & rubber products; petroleum & coal products; transportation equipment; non-metallic mineral products; computer & electronic products; primary metal; paper products; electrical equipment; cement; fabricated metal products; food, beverage & tobacco products; furniture & related products; printing & related support activities; textile, apparel, leather & footwear; and chemical & pharmaceutical products”.
The Index, among other sectors, examines what happened in the employment matter in the month in view. “Employment level index in the month of August 2016 stood at 40.4 points, indicating a faster decline when compared with the level in the preceding month. The index has been declining for eighteen consecutive months.
“Of the sixteen sub-sectors, fifteen recorded decline in the following order: transportation equipment; cement; fabricated metal products; non-metallic mineral products; furniture & related products; printing & related support activities; computer & electronic products; chemical & pharmaceutical products; petroleum & coal products; textile, apparel, leather & footwear; primary metal; food, beverage & tobacco products; electrical equipment; paper products; and plastics & rubber products. Only the appliances and components sub-sector recorded growth in the review period”
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