The manufacturing sector of the Nigerian economy has maintained its expansionary trend for the 18 consecutive months, according to the Central Bank of Nigeria (CBN) in its Purchasing Managers’ Index (PMI) Survey Report for September 2018. PMI indicates changes in the level of business activities in the current month compared with the preceding month.
The report indicates that Manufacturing PMI for the month of September stood at 56.2 index points while composite PMI for the Non-manufacturing sector stood at 56.5 index points, during the month under review, indicating expansion in the sector for the seventeenth consecutive months.
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.
Manufacturing PMI
The Manufacturing (PMI) index grew at a slower rate when compared to the index in the previous month of August (57.1). Out of the 14 sub-sectors surveyed in the month of September, 11 reported growth in the following order:
- Electrical equipment.
- Printing and related support activities
- Transportation equipment
- Nonmetallic mineral products
- Chemical & pharmaceutical products;
- Fabricated metal products
- Furniture & related products
- Textile, apparel, leather and footwear
- Food, beverage & tobacco products.
- Petroleum & coal products
- Plastics & rubber products.
The remaining three sub-sectors contracted in the following order:
- Petroleum & coal products
- Paper products
- Primary metal
Still on the manufacturing sector, the production level index grew for the nineteenth consecutive month in September 2018, to stand at 58.4 points. The index indicates a faster growth in the current month when compared to its level in the preceding month of August.
Also, the employment level in September stood at 54.9 points, indicating growth in employment level for the seventeenth consecutive month.
Non-manufacturing PMI
Meanwhile, the Non-manufacturing PMI index also grew at a slower rate during the month under consideration when compared to the index in the previous month of August (58.0). Out of the 17 sub-sectors surveyed in the month of September, 15 reported growth while 3 sub-sectors recorded contraction.
The business activity index grew for the eighteenth consecutive month in September 2018, to stand at 58.1 points, indicating expansion in non-manufacturing business activity. However, the employment level in September stood at 55.4 points, indicating growth in employment level for the seventeenth consecutive month.