Economy
By Anayo Ezugwu
THE Nigerian economy in July showed expansion in its Purchasing Managers’ Index, PMI. The Central Bank of Nigeria, CBN, PMI showed that the Manufacturing index stood at 57.6 points in July, compared with the 57.4 points recorded in June. This indicated an expansion in the manufacturing sector for the 28th consecutive month.
The PMI report published on the CBN website indicated that the index grew at a faster rate when compared to the index in the previous month. Of the 14 subsectors surveyed, 13 reported growth in the review month in the following order: petroleum and coal products; transportation equipment; cement; printing and related support activities; paper products; food, beverage and tobacco products; furniture and related products; fabricated metal products; nonmetallic mineral products; plastics and rubber products; primary metal; chemical and pharmaceutical products; and electrical equipment.
While the Textile, apparel, leather and footwear subsector recorded decline in the review period. The report stated that at 58.9 points, the production level index for the manufacturing sector grew for the twenty-ninth consecutive month in July 2019. The index indicated a slower growth in the current month, when compared to its level in June 2019. Twelve of the 14 manufacturing subsectors recorded increased production level, while two recorded decline.
“At 57.2 points, the new orders index grew for the twenty-eighth consecutive month, indicating increase in new orders in July 2019. Eleven subsectors reported growth, 1 remained unchanged, while 2 contracted in the review month. The manufacturing supplier delivery time index stood at 57.5 points in July 2019, indicating faster supplier delivery time. The index recorded growth for twenty-six consecutive months. Ten of the 14 subsectors recorded improved suppliers’ delivery time, while 1 remained unchanged and 3 recorded decline in the review period.
“The employment level index for July 2019 stood at 57.3 points, indicating growth in employment level for the twenty-seventh consecutive month. Of the 14 subsectors, 10 reported increased employment level, 1 reported unchanged employment level while 3 reported decreased employment in the review month.
“The Manufacturing sector inventories index grew for the twenty-eighth consecutive month in July 2019. At 56.2 points, the index grew at a faster rate when compared to its level in June 2019. Ten of the 14 subsectors recorded growth, one remain unchanged, while 3 subsectors reported decline in raw material inventories in the review month,” it said.
According the report, the non-manufacturing PMI new orders and inventories grew at a faster rate, while business activity and employment level grew at a slower rate in July 2019. The composite PMI for the nonmanufacturing sector stood at 58.7 points in July 2019, indicating expansion in the Non-manufacturing PMI for the twenty-seventh consecutive month.
The index grew at a faster rate when compared to its level in June 2019. All 17 surveyed subsectors recorded growth in the following order: management of companies; arts, entertainment and recreation; finance and insurance; repair, maintenance/washing of motor vehicles; construction; real estate rental and leasing; agriculture; health care and social assistance; information and communication; accommodation and food services; wholesale/retail trade; water supply, sewage and waste management; transportation and warehousing; electricity, gas, steam and air conditioning supply; professional, scientific, and technical services; educational services; and utilities.
“At 57.6 points, the business activity index grew for the twenty-eighth consecutive month, indicating expansion in non-manufacturing business activity in July 2019. Sixteen subsectors recorded growth in business activity, while 1 remained unchanged in the review month. At 60.1 points, new orders index grew for the twenty-eighth consecutive month in July 2019. All 17 surveyed subsectors recorded growth in new orders during the review period.
“The employment level Index for the non-manufacturing sector stood at 58.0 points, indicating growth in employment for the twenty-seventh consecutive month. Fourteen subsectors recorded growth in employment level, 1 remained unchanged, while 2 subsectors declined in the review period.
“58.9 points, non-manufacturing inventory index grew for the twenty-seventh consecutive month, indicating growth in inventories in the review period. Of the seventeen surveyed subsectors, 15 recorded higher inventories, while 2 recorded declining inventories in July 2019.”
– Aug. 2, 2019 @ 15:39 GMT |
Tags: @cenbank Manufacturing Index improves by 57.6 points in July
