Production Level Rise ahead of Festive Period Despite Slowing Demand Triggered by Inflation

Must Read

List of United Bank for Africa (UBA) Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number that usually identifies both the bank and the branch where an account is held. The sort...

List of Access Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number which usually identifies both the bank and the branch where an account is...

How To Block Your Bank Account And SIM Card In Case Of Emergency

Losing your phone and wallet or having them stolen can be very frustrating. However, in case that happens to...
- Advertisement -

Recently released Purchasing Managers’ Index (PMI) survey report by Central Bank of Nigeria (CBN) showed that manufacturing sector hit 50.2 index points while the non manufacturing sector witnessed further recovery from contraction, nearing 50 index points (which indicates neutrality), as production level and business activities picked.

In line with our expectations, the manufacturing composite PMI rose from contraction to 50.2 index points in November (from 49.4 in October), following sixth consecutive months of contraction since May 2020.

Production Level Rise ahead of Festive Period Despite Slowing Demand Triggered by Inflation
Heavy industry

The faster expansion in manufacturing composite PMI was chiefly driven by an increase in production index, to 51.7 in November 2020 (from 50.0 in October 2020), albeit demand dragged a little as new orders index slowed to 50.5 (from 51.2). Producers’ costs of production increased (input prices index rose to 71.7 from 70.9), however selling prices were generally sticky (output prices index increased to 60.1 from 60.0).

Supplies of raw materials to manufacturers improved despite increasing demand from producers – supplier delivery time index rose to 52.2 in November (from 51.8 in October). Despite the swiftness on the part of suppliers, manufacturers still stocked up raw materials as festivities beckon – raw materials/work-in-progress index moved up, to 48.5 from 46.2 – reflected by the quantity of purchases index which rose to 51.7 from 47.8.

- Advertisement -

We saw stock of finished goods rise – its index increased to 46.6 points in November 2020 from 44.9 points in October 2020 – as sales slowed despite rising production level. Similarly, contraction in staffing levels in the manufacturing space further slowed given the increase in production volume – employment index rose further to 47.3 points in November (compared to 46.0 points in October).

Of the fourteen manufacturing sub-sectors, Transportation equipment and Cement sub-sector indices expanded to 64.2 points and 52.6 points in November 2020 from 59.6 points and 50.5 points in October 2020 while the Nonmetallic mineral products, Furniture & related products and Food, beverage & tobacco products sub-sectors recovered from contrations to 59.4 points (from 47.5 points), 55.8 points (46.6 points) and 50.1 points (49.3 points) respectively.

Read Also:  Inflation Watch: Inflation Rate to Drop in February on Base Effect, To 14.31%

Meanwhile, the nonmanufacturing sector recorded slower contraction as its composite PMI increased to 47.6 index points in November 2020 (from 46.8 index points in October 2020). This was chiefly driven by improved business activity to 50.5 (from 48.7) despite the incoming business index slowing to 47.8 from 46.9. Also, employment index further increased, to 46.7 (from 44.2).

Business activity still picked in spite of the rise in average price of inputs, to 54.5 index points in November (from 52.9 index points in October). Elsewhere, the rising prices of different benchmarks of crude oil were sustained in the just concluded week.

- Advertisement -

Notably, the West Texas Intermediate (WTI) crude price rose w-o-w by 1.89% to USD41.90 a barrel while Brent price rose by 1.54% to USD44.20 a barrel as at Thursday, November 19, 2020. Bonny Light increased by 0.87% to USD43.85 a barrel.

Also, we saw a 2.93% w-o-w jump in US crude oil input to refineries to 13.84 mb/d as at November 13, 2020 (albeit, It declined y-o-y by 15.82% from 16.44 mb/d as at November 15, 2019). However, U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) rose by 0.16% w-o-w to 489.48 million barrels as at November 13, 2020 (inventories have risen by 8.68% y-o-y from 450.38 million barrels as at November 15, 2019).

We feel that manufacturers tried to get ahead of the aniticipated rise in input prices during festive period in December. Hence, they opted to produce more now despite the slowing demand which appears to be triggered by rising inflation rate. Meanwhile, we expect GDP in Q3 2020 to be reflective of the positive PMIs figures in Q3.
- Advertisement -
Production Level Rise ahead of Festive Period Despite Slowing Demand Triggered by Inflation - Brand SpurProduction Level Rise ahead of Festive Period Despite Slowing Demand Triggered by Inflation - Brand Spur

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Production Level Rise ahead of Festive Period Despite Slowing Demand Triggered by Inflation - Brand SpurProduction Level Rise ahead of Festive Period Despite Slowing Demand Triggered by Inflation - Brand Spur

Latest News

Spackman Entertainment Group’s Upcoming Musical Film THE BOX, Starring EXO’s Chanyeol, Scheduled To Be Released In The Spring Of 2021

  • Following the art film STONE SKIPPING, THE BOX is the next film production of the Company's wholly‐owned indirect subsidiary, Studio Take, founded by veteran movie producer, Mr. Song Dae‐chan
  • THE BOX will be EXO's Chanyeol's first lead acting role in a film
  • Directed by Yang Jung Woong, the Executive Producer of the 2018 PyeongChang Winter Olympics opening and closing ceremonies, THE BOX is set to be screened in Korea in the spring of 2021

SINGAPORE - Media OutReach - 3 March 2021 - Spackman Entertainment Group Limited ("Spackman Entertainment Group" or the "Company" and together with its subsidiaries, the "Group"), one of Korea's leading entertainment production groups, wishes to announce that its upcoming musical film THE BOX, produced by the Company's indirect wholly-owned subsidiary, Studio Take Co., Ltd. ("Studio Take"), is set to be released in Korea in the spring of 2021.


Following the art film STONE SKIPPING, THE BOX is the next film production of Studio Take, which was founded by veteran movie producer, Mr. Song Dae‐chan.

THE BOX is about the musical journey of an aspiring singer and a once popular producer.

Directed by Yang Jung Woong, the Executive Producer of the 2018 PyeongChang Winter Olympics opening and closing ceremonies, THE BOX stars EXO's Chanyeol who plays the aspiring singer and Jo Dal Hwan who acts as the once popular producer. This is Chanyeol's first lead role for a Korean commercial film. Jo Dal Hwan is known for his role in SECRET HEALER (2016), TRAFFICKERS (2012) and THE CON ARTISTS (2014).


About Spackman Entertainment Group Limited

Spackman Entertainment Group Limited ("SEGL" or the "Company"), and together with its subsidiaries, (the "Group"), founded in 2011 by Charles Spackman, is one of Korea's leading entertainment production groups. SEGL is primarily engaged in the independent development, production, presentation, and financing of theatrical motion pictures in Korea. According to Variety, Korea was the world's fourth largest box office market in 2019, behind only North America, China and Japan.

Read Also:  Nigeria: Foreign Trade Drops by 27.30% in Q2


The Group also invests into and produces Korean television dramas. In addition to our content business, we also own equity stakes in entertainment-related companies and film funds that can financially and strategically complement our existing core operations. SEGL is listed on the Catalist of the Singapore Exchange Securities Trading Limited under the ticker 40E.

Production Labels

SEGL's wholly-owned Zip Cinema Co., Ltd. ("Zip Cinema") is one of the most recognised film production labels in Korea and has originated and produced some of Korea's most commercially successful theatrical films, consecutively producing 10 profitable movies since 2009 representing an industry leading track record. Recent theatrical releases of Zip Cinema's motion pictures include some of Korea's highest grossing and award-winning films such as CRAZY ROMANCE (2019), DEFAULT (2018), MASTER (2016), THE PRIESTS (2015), COLD EYES (2013), and ALL ABOUT MY WIFE (2012). For more information on Zip Cinema, do visit http://zipcine.com


SEGL also owns Novus Mediacorp Co., Ltd. ("Novus Mediacorp"), an investor, presenter, and/or post-theatrical distributor for a total of 79 films (58 Korean and 21 foreign) including ROSE OF BETRAYAL, THE OUTLAWS and SECRETLY, GREATLY, which was one of the biggest box office hits of 2013 starring Kim Soo-hyun of MY LOVE FROM THE STARS, as well as FRIEND 2: THE GREAT LEGACY. In 2012, Novus Mediacorp was also the post-theatrical rights distributor of ALL ABOUT MY WIFE, a top-grossing romantic comedy produced by Zip Cinema. In 2018, THE OUTLAWS, co-presented by Novus Mediacorp broke the all-time highest Video On Demand ("VOD") sales records in Korea. For more information on Novus Mediacorp, do visit http://novusmediacorp.com.


The Company owns a 100% equity interest in Simplex Films Limited ("Simplex Films") which is an early stage film production firm. The maiden film of Simplex Films, JESTERS: THE GAME CHANGERS (2019), was released in Korea on 21 August 2019. Simplex Films has several line-up of films including A BOLT FROM THE BLUE (working title).


The Company owns a 100% equity interest in Take Pictures Pte. Ltd. ("Take Pictures") which produced STONE SKIPPING (2020) and shall release THE BOX and GUARDIAN (working title) in 2021 tentatively.


The Company owns a 100% equity interest in Greenlight Content Limited ("Greenlight Content") which is mainly involved in the business of investing into dramas and movies, as well as providing consulting services for the production of Korean content. Through the acquisition of Greenlight Content, the Group's first co-produced drama, MY SECRET TERRIUS, starring top Korean star, So Ji Sub, achieved #1 in drama viewership ratings for its time slot and recorded double digits for its highest viewership ratings. Greenlight Content was one of the main investors of MY SECRET TERRIUS.


The Company owns a 20% equity interest in The Makers Studio Co. Ltd., which plans to produce and release four upcoming films, the first of which will be THE ISLAND OF THE GHOST'S WAIL, a comedy horror film.


Our films are theatrically distributed and released in Korea and overseas markets, as well as for subsequent post-theatrical worldwide release in other forms of media, including online streaming, cable TV, broadcast TV, IPTV, video-on-demand, and home video/DVD, etc. We release all of our motion pictures into wide-theatrical exhibition initially in Korea, and then in overseas and ancillary markets.

Talent Representation

The Company holds an effective shareholding interest of 43.88% in Spackman Media Group Limited ("SMGL"). SMGL, a company incorporated in Hong Kong, together with its subsidiaries, is collectively one of the largest entertainment talent agencies in Korea in terms of the number of artists under management, including some of the top names in the Korean entertainment industry. SMGL operates its talent management business through renowned agencies such as MSteam Entertainment Co., Ltd. (Son Ye-jin, Lee Min-jung, Ko Sung-hee), UAA&CO Inc. (Song Hye-kyo, Yoo Ah-in, Park Hyung-sik), Fiftyone K Inc. (So Ji Sub, Ok Taec-yeon), SBD Entertainment Inc. (Son Suk-ku), and Kook Entertainment Co., Ltd. (Kim Sang-kyung, Kim Ji-young). Through these full-service talent agencies in Korea, SMGL represents and guides the professional careers of a leading roster of award-winning actors/actresses in the practice areas of motion pictures, television, commercial endorsements, and branded entertainment. SMGL leverages its unparalleled portfolio of artists as a platform to develop, produce, finance and own the highest quality of entertainment content projects, including theatrical motion pictures, variety shows and TV dramas. This platform also creates and derives opportunities for SMGL to make strategic investments in development stage businesses that can collaborate with SMGL artists. SMGL is an associated company of the Company.


The Company owns a 100% equity interest in Constellation Agency Pte. Ltd. ("Constellation Agency"). Constellation Agency, which owns The P Factory Co., Ltd. ("The P Factory") and Platform Media Group Co., Ltd. ("PMG"), is primarily involved in the business of overseas agency for Korean artists venturing into the overseas market. The P Factory is an innovative marketing solutions provider specializing in event and branded content production. PMG is a talent management agency which represents and manages the careers of major artists in film, television, commercial endorsements and branded entertainment.

Strategic Businesses

The Company owns a 100% equity interest in Frame Pictures Co., Ltd. ("Frame Pictures"). Frame Pictures is a leader in the movie/drama equipment leasing business in Korea. Established in 2014, Frame Pictures has worked with over 25 top directors and provided the camera and lighting equipment for some of Korea's most notable drama and movie projects including ITAEWON CLASS (2020), HOW TO BUY A FRIEND (2020), KIM JI-YOUNG, BORN 1982 (2019), FOUR MEN (2019) and ASADAL CHRONICLES (2019).

We also operate a café-lounge called Upper West, in the Gangnam district of Seoul and own a professional photography studio, noon pictures Co., Ltd.

For more details, do visit http://www.spackmanentertainmentgroup.com/

Production Level Rise ahead of Festive Period Despite Slowing Demand Triggered by Inflation - Brand Spur
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -Production Level Rise ahead of Festive Period Despite Slowing Demand Triggered by Inflation - Brand SpurProduction Level Rise ahead of Festive Period Despite Slowing Demand Triggered by Inflation - Brand Spur