Manufacturing PMI Stands at 56.5% in May 2018 from 56.9% in April 2018



The May 2018 PMI survey was conducted by the Statistics Department of the Central Bank of Nigeria during the period May 11 – 22, 2018. The respondents were purchasing and supply executives of manufacturing and non-manufacturing organizations in 31 locations in Nigeria (Fig. 1). The Bank makes no representation regarding the individual companies, other than the information they have provided. The data contained herein further provide input for policy decisions.

Data and Method of Presentation

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 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 half 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, namely: production level, level of new orders, suppliers’ delivery time, employment level and raw materials inventory/work in progress, 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, namely: business activity, level of 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 contractions are listed in the order of the highest to the lowest contraction.

The Manufacturing PMI in the month of May stood at 56.5 index points, indicating expansion in the manufacturing sector for the fourteenth consecutive month. (Fig. 3 and Table 1). The index, however, grew at a slower rate when compared to the index in the previous month. Of the 14 subsectors surveyed, 10 reported growth in the review month in the following order: petroleum & coal products; paper products; plastics & rubber products; electrical equipment; food, beverage & tobacco products; cement; chemical & pharmaceutical products; primary metal; printing & related support activities; and textile, apparel, leather & footwear. The transportation equipment; fabricated metal products; nonmetallic mineral products; and furniture & related products subsectors declined in the review month.

Production Level

At 58.8 points, the production level index for the manufacturing sector grew for the fifteenth consecutive month in May 2018. The index indicated a faster growth in the current month when compared to its level in the preceding month. Nine (9) of the fourteen (14) manufacturing subsectors recorded increase in production level, two (2) remained unchanged, while the remaining three (3) recorded declines in production level during the review month (Fig. 4 and Table 2).

New Orders

At 54.9 points, the new orders index grew for the fourteenth consecutive month, indicating an increase in new orders in May 2018. Seven (7) subsectors reported growth, two (2) remained unchanged while five (5) contracted in the review month (Fig. 5 and Table 3).

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