The Manufacturing Purchasing Managers’ Index (PMI) for May dropped to 42.4 from 51.1 points in March. This is the lowest since April 2017. The index measures monthly changes in business performance, based on surveys carried out by business executives across the country. An index below 50 indicates a contraction in the economy. Of all the 14 subsectors surveyed, only the electrical equipment sector recorded a growth figure.
The May 2020 PMI survey was conducted by the Statistics Department of the Central Bank of Nigeria during the period May 14-19, 2020. The respondents were purchasing and supply executives of manufacturing and non-manufacturing organizations in all 36 states in Nigeria and the Federal Capital Territory (FCT). The Bank makes no representation regarding the individual companies, other than the information they have provided.
The data contained herein further provides input for policy decisions.
The Manufacturing PMI in the month of May stood at 42.4 index points, indicating contraction in the manufacturing sector for the first time after recording expansion for thirty-six consecutive months.
Of the 14 surveyed subsectors, only the electrical equipment sector reported growth (above 50% threshold) in the review month, while the remaining 13 subsectors reported declines in the following order cement; petroleum & coal products; printing & related support activities; furniture & related products; textile, apparel, leather and footwear; paper products; fabricated metal products; food, beverage & tobacco products; chemical & pharmaceutical products; transportation equipment; plastics & rubber products; nonmetallic mineral products; appliances and components and primary metal.
At 44.5 points, the production level index for the manufacturing sector declined in May 2020 after thirty-seven consecutive months of recorded growth. One subsector recorded an increased production level, 4 remained unchanged, while nine subsectors recorded declines in production in May 2020.
At 42.8 points, the new orders index declined after thirty-sixth consecutive months of growth, indicating declines in new orders in May 2020. Three subsectors reported growth, 2 remained unchanged while 9 recorded declines in the review month.
Supplier Delivery Time
The manufacturing supplier delivery time index stood at 65.2 points in May 2020, indicating growth in supplier delivery time. The index recorded growth from the contraction level of March 2020. Five of the 14 subsectors recorded improved suppliers’ delivery time, 4 subsectors reported no change while 5 recorded slower delivery time in March 2020.
The employment level index for May 2020 stood at 24.5 points, indicating a decline in employment level for the second month. Of the 14 subsectors, one subsector remains unchanged, while the remaining 13 subsectors recorded lower employment level in the review month.
Raw material Inventories
The manufacturing sector inventories index contracted for the second time in May 2020. At 37.4 points, the index further dipped when compared to its level in March 2020. All the 14 subsectors recorded reported lower raw material inventories in the review month.
Non-Manufacturing PMI Report
Business activity, new orders, employment level and inventories contracted in May 2020. The composite PMI for the non-manufacturing sector stood at 25.3 points in May 2020, indicating contraction in Nonmanufacturing PMI for the second consecutive month. The index declined below the turning point of 50 points in the review month.
All of the 17 subsectors surveyed subsectors recorded declines (below the 50% threshold) in the following order: construction; repair, maintenance/washing of motor vehicles…; electricity, gas, steam & air conditioning supply; educational services; agriculture; finance & insurance; information & communication; water supply, sewage & waste management; accommodation & food services; real estate, rental & leasing; professional, scientific, & technical services; wholesale trade; health care & social assistance; management of companies; transportation & warehousing; arts, entertainment & recreation; utilities.
At 19.5 points, the business activity index declined for the first time after recording growth for thirty-six consecutive months, indicating contraction in non-manufacturing business activity in May 2020. All the 17 surveyed subsectors recorded declines in business activity in the review month.
At 19.6 points, the new orders index declined for the second time in May 2020. Of the 17 surveyed subsectors, 1 remained unchanged while 16 subsectors recorded declines in new orders during the review period.
The employment level Index for the non-manufacturing sector stood at 32.0 points, indicating a decrease in employment level in the review month. Of the 17 surveyed subsectors, 1 subsector recorded no change while 16 subsectors recorded declines in the employment level.
At 30.1 points, non-manufacturing inventory index dipped for the second consecutive month. This indicates a decrease in inventories in the review period. From the surveyed subsectors, one of the 17 subsectors reported no change, while 16 subsectors recorded declines in inventories in the review period.