PMI expands fifth consecutive month to 53.6 in August –CBN

The Central Bank of Nigeria (CBN) has said Purchasing Manufacturing Index (PMI) expands for fifth consecutive month to 53.6 index points in August, indicating expansion in the manufacturing sector.
The PMI is an indicator of the economic health of the manufacturing sector, which is based on five major indicators — new orders, inventory levels, production, supplier deliveries and the employment environment.
According to the latest PMI released by the CBN on Thursday, 12 of the 16 subsectors reported growth in the review month in the following order: computer & electronic products; appliances and components; chemical & pharmaceutical products; textile, apparel, leather and footwear; electrical equipment; printing & related support activities; paper products; non metallic mineral products; food, beverage & tobacco products; furniture & related products; cement and plastics & rubber products.
But the remaining four subsectors contracted in the order: transportation equipment; primary metal; petroleum & coal products and fabricated metal products.
In the same vein, the production level index for manufacturing sector grew for the sixth consecutive month in August 2017.
According to the CBN PMI report for August, “At 57.4 points, the index indicated an increase in production at a slower rate, when compared to its level in the preceding month. 11 of the 16 manufacturing subsectors recorded increase in production level, one remained unchanged and the other 4 declined during the review month.”
At 52.3 points, the new orders index grew for the fifth consecutive month. Six subsectors reported growth, 1 remained unchanged while nine contracted in the review month
According to the report, the supplier delivery time index for the manufacturing sector, at 52.0 points in August 2017, rose for the third consecutive month. Nine subsectors recorded improved suppliers’ delivery time; two remained unchanged while five subsectors recorded delayed delivery time.
The report explained that employment level index in August 2017 stood at 51.5 points, indicating growth in employment level for the fourth consecutive month.
“Of the 16 subsectors, seven recorded growth, four remained unchanged while five subsectors recorded decline in employment level over the preceding month,” the report said.
For the inventories index, the report by CBN said, “At 54.9 points, inventories index grew for the fifth consecutive month, and at a faster rate when compared to its level in July 2017. Thirteen of the 16 subsectors recorded growth, one remained unchanged while two subsectors recorded decline in inventories.”
The report added that, “The composite PMI for the non-manufacturing sector stood at 54.1 points in August 2017, indicating growth in Non-manufacturing PMI for the fourth consecutive month. Of the 18 nonmanufacturing subsectors, 15 recorded growth in the following order: utilities; public administration; information & communication; finance & insurance; health care & social assistance; agriculture; accommodation & food services; electricity, gas, steam & air conditioning supply; transportation & warehousing; repair, maintenance/washing of motor vehicles; wholesale trade; educational services; professional, scientific, & technical services; arts, entertainment & recreation; and water supply, sewage & waste management. The real estate, rental & leasing; construction; and management of companies sub-sectors recorded contraction in the review period.”