Nigeria’s PMI Dropped To 53.6 In August- CBN Report

The Central Bank of Nigeria (CBN), on Thursday this morning published its Composite Purchasing Managers’ Index for the month of August which at 53.6 represented a weakening in the index from previous month’s 54.1, according to data by its Statistics Department
A composite PMI above 50 points shows that the manufacturing and non-manufacturing economy is generally expanding, with 50 points indicating no change and below 50 points showing a general contraction.
This therefore means that although production, new orders and employment levels expanded averagely, the growth rate was slower in the month under review, while supplier delivery time and inventories grew faster.
The report noted that data was mined from 1,671 from a sample of 1,950 or 85.7% of respondents, who are 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.
According to the report, “12 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 four subsectors contracted in the order: transportation equipment; primary metal; petroleum & coal products and fabricated metal products.”
A further breakdown of the data showed that production level index for manufacturing sector grew for the sixth consecutive month in August 2017 to 57.4 points which indicates an increase in production at a slower rate, when compared to its level in the preceding month.
“Eleven of the 16 manufacturing subsectors recorded increase in production level, one remained unchanged and the other four declined during the review month.
“At 52.3 points, the new orders index grew for the fifth consecutive month. Six sub-sectors reported growth, 1 remained unchanged while 9 contracted in the review month.
“The supplier delivery time index for the manufacturing sector, at 52.0 points in
August 2017, rose for the third consecutive month. Nine subsectors recorded improved suppliers’ delivery time, 2 remained unchanged while five subsectors recorded delayed delivery time.”
Also, the composite PMI for the non-manufacturing sector stood at 54.1 points in the review period indicated a growth in Non-manufacturing PMI for the fourth consecutive month, with 15 of the 18 subsectors “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.
Sub-sectors like real estate, rental & leasing; construction; and management of companies recorded contraction in the review period.

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