PMI

The manufacturing Purchasing Managers’ Index (PMI) for the month of February indicates that Nigeria’s manufacturing sector expanded for the 23rd consecutive month. This information is according to the Central Bank of Nigeria (CBN) PMI Survey Report covering February 2019.

Just as in previous months, the manufacturing PMI for last month is well above the 50-point threshold that separates expansion from contraction in business conditions; therefore pointing to robust growth in the private sector.

In specific terms, the Manufacturing PMI stood at 57.1 index points, which implies that the manufacturing sector is gradually expanding. However, when compared to the preceding month of January which saw PMI at 58.5, the Febrary index grew at a slower rate.

Manufacturing PMI Sub-sectors

“Production level, new orders, supplier delivery time, employment level and
inventories grew at a slower rate in February 2019”

Top performing sub-sectors: Out of all the fourteen subsectors surveyed, thirteen were reported to have witnessed growth. Petroleum and coal products grew fastest with 83.3 point index in February, as against 62.5 point index in January.

Other sub-sectors that recorded growth include- electrical equipment; transportation equipment; plastics & rubber products; food; beverage & tobacco products; textile/apparel; nonmetallic mineral products; chemical & pharmaceutical products; furniture & related products; printing & related support activities and cement.

Low Performing sub-sectors: The sub-sectors that grew slowest are- fabricated metal products and paper products. Fabricated metal products grew from 58.5 to 53.2 in February, while paper products grew from 61.3 to 51.4 point index in the period under review.

In all the subsectors, the primary metal recorded decline from 61.5 in January to 48.8 point index in February 2019

Production Level: At 57.5 points, the production level index for the manufacturing sector grew forthe twenty-fourth consecutive month in February 2019. The index indicated slower growth in the current month when compared to its level in the preceding month.

New Orders: At 56.9 points, the new orders index grew for the twenty-third consecutive month, indicating an increase in new orders in February 2019. h.

Coronation Research

Supplier Delivery Time: 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.

Employment Level: The employment level index for February 2019 stood at 56.3 points, indicating growth in employment level for the twenty-second consecutive month. Of the 14 subsectors, eight reported increased employment level, 5 reported unchanged employment level while 1 reported decreased employment in the review month

Raw material Inventories: The Manufacturing sector inventories index grew for the twenty-third consecutive month in February 2019. At 56.2 points, the index grew at a slower rate when compared to its level in January 2019.

Non-Manufacturing PMI Sub-sectors

The composite PMI for the nonmanufacturing sector stood at 58.4 points in February 2019, indicating expansion in the Non-manufacturing PMI for the twenty-second consecutive month. The index grew at a slower rate when compared to that in January
2019.

  • Top performing sub-sectors: In all 17 surveyed subsectors, top performing subsectors recorded growth in the following order: management of companies; arts, entertainment & recreation; utilities; information & communication; finance & insurance; repair, maintenance/washing of motor vehicles; educational services; real estate rental & leasing; wholesale/retail trade; transportation & warehousing; health care & social assistance; electricity, gas, steam & air conditioningsupply; agriculture.
  • Low Performing sub-sectors: The least performing sectors include accommodation & food services; construction; professional, scientific, & technical; services; and water supply, sewage & waste management.
  • Business Activity: The business activity index grew with  59.7 points for the twenty-third consecutive month, indicating expansion in non-manufacturing business activity in February 2019. The index grew at a slower rate when compared to its level in the previous month.
  • New Orders: At 58.6 points, new orders index grew for the twenty-third consecutive month in February 2019.
  • Employment Level: The employment level Index for the non-manufacturing sector stood at 57.3 points, indicating growth in employment for the twenty-second consecutive month.
  • Non-manufacturing Inventory: The non-manufacturing inventory index grew with 58.2 points for the twenty-second consecutive month, indicating growth in inventories in the review period.

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