CBN Manunafucting PMI down by 0.5 points to 53.6 in August


The August 2017 PMI was conducted by the Statistics Department of the Central Bank of Nigeria during the period August 7 – 11, 2017. The respondents were purchasing and supply executives of manufacturing and non-manufacturing organizations in 13 locations in Nigeria (2 states in each geopolitical zone and the Federal Capital Territory). A total of 1,671 responses were received from a sample of 1,950 respondents, representing a response rate of 85.7 per cent. 

The Manufacturing and Non-Manufacturing PMI Report on businesses is based on survey responses indicating the changes in the level of business activities in the current month compared with the preceding month. For each of the indicators measured, this report shows the diffusion index of the responses. The diffusion index is computed as the percentage of responses with positive change plus one-half of the percentage of those reporting no change, except for supplier delivery time, which is computed as the percentage of responses with negative change plus onehalf of the percentage of those reporting no change. The composite PMI for the manufacturing sector is computed as the weighted average of five diffusion indices: production level, new orders, supplier delivery time, employment level and raw materials inventory, with assigned weights of 25%, 30%, 15%, 10% and 20%, respectively. The composite PMI for the non-manufacturing sector is computed from four diffusion indices: business activity, new orders, employment level and raw materials inventory, with equal weights of 25% each.

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. The subsectors reporting growth are listed in the order of highest to lowest growth, while those reporting contraction are listed in the order of the highest to the lowest contraction.

The Manufacturing PMI stood at 53.6 index points in August 2017, indicating expansion in the manufacturing sector for the fifth consecutive month. Twelve 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; nonmetallic mineral products; food, beverage & tobacco products; furniture & related products; cement and plastics & rubber products. The remaining 4 subsectors contracted in the order: transportation equipment; primary metal; petroleum & coal products and fabricated metal products.

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 non-manufacturing sub sectors, 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.

View full report here

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