Nigeria’s Manufacturing Index Expands – CBN

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Manufacturer’s Purchasing Managers’ Index in the country expands for the first in December 2016, according to Central Bank of Nigeria

THE manufacturing Purchasing Managers’ Index, PMI, stood at 52 index points, as at December 2016, indicating expansion in the manufacturing sector during the review period. The index had recorded decline in the preceding 11 months.

The report showed that production level, new orders, and raw material inventories expanded from contraction; employment level declined slower; but supplier delivery time worsened.

The report posted on the Central Bank of Nigeria’s, CBN, website showed that eight of the 16 sub-sectors surveyed recorded expansion in the review month in the following order: cement; food, beverage and tobacco products; textile, apparel, leather and footwear; plastics and rubber products; paper products; appliances and components; chemical and pharmaceutical products; and furniture and related products.

The fabricated metal products sub-sector remained unchanged, while the remaining seven sub-sectors declined in the order: computer and electronic products; electrical equipment; primary metal; transportation equipment; petroleum and coal products; printing and related support activities; and non-metallic mineral products.

Also, at 57.6 index points, the production level index for manufacturing sector indicated the sector expanded in the review period, compared to the decline recorded in the preceding eleven months. Five manufacturing sub-sectors recorded growth in production level during the review month in the following order: cement; food, beverage and tobacco products; electrical equipment; plastics and rubber products; and textile, apparel, leather and footwear.

Furthermore, the appliances and components sub-sector remained unchanged, while the remaining 10 sub-sectors declined in the review period in the order: primary metal; petroleum and coal products; computer and electronic products; transportation equipment; furniture and related products; fabricated metal products; non-metallic mineral products; paper products; chemical and pharmaceutical products; and printing and related support activities.

At 51.8 points, the new orders index showed expansion in new orders after eleven months of contraction. It stood at 45.1 in November 2016. The five sub-sectors that recorded expansion in new orders were: cement; food, beverage and tobacco products; textile, apparel, leather and footwear; paper products; and fabricated metal products.

The plastics and rubber products sub-sector remained unchanged, while the remaining 10 sub-sectors declined in the order: primary metal; electrical equipment; transportation equipment; appliances and components; petroleum and coal products; printing and related support activities; computer and electronic products; non-metallic mineral products; furniture and related products; and chemical and pharmaceutical products.

In addition, the report showed that at 47.9 index points, the supplier delivery time for manufacturing sub-sectors contracted in the month of December 2016, after nine consecutive periods of expansion.

Nine sub-sectors recorded worsening suppliers’ delivery time in the following order: transportation equipment; food, beverage and tobacco products; cement; textile, apparel, leather and footwear; paper products; printing and related support activities; chemical and pharmaceutical products; plastics and rubber products; and non-metallic mineral products. The computer and electronic products and electrical equipment sub-sectors remained unchanged, while the appliances and components; primary metal; furniture and related products; petroleum and coal products; and fabricated metal products sub- sectors recorded improving delivery time in December 2016.

“Employment level index in the month of December 2016 stood at 48.6 points, indicating declines in employment level for the 22 consecutive months. However, the index shows a slowing contraction in manufacturing employment when compared with the level in the preceding month.

“Of the 16 sub-sectors, nine recorded contraction in employment in the following order: computer and electronic products; electrical equipment; appliances and components; printing and related support activities; furniture and related products; chemical and pharmaceutical products; primary metal; fabricated metal products; and non-metallic mineral products,” it stated.

—  Jan 16, 2017 @ 01:00 GMT

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