The Central Bank of Nigeria (CBN) on Tuesday released the Purchasing Managers Index (PMI) which saw manufacturing sector growing at 57.4 points in June. This represents slower expansion compared to 57.8 points recoded in May 2019.
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.
The report revealed that production level, supplier delivery time and employment level grew at a faster rate, while new orders and raw materials grew at a slower rate in June 2019.
FSDH Research, headed by Ayodele Akinwunmi, stated that the levels of PMI figures in 2019 so far are higher than the corresponding period of last year.
A total of 12 out of the 14 subsectors surveyed, reported growth in the review month. These include transportation equipment; petroleum and coal products; cement; chemical and pharmaceutical products; electrical equipment; food, beverage and tobacco products; printing and related support activities; fabricated metal products; paper products; furniture and related products; textile, apparel, leather and footwear; and plastics and rubber products. The non-metallic mineral products and primary metal subsectors recorded declines in the review period.
The production level index of the manufacturing PMI at 59.3 points, grew for the twenty-eighth consecutive month in June 2019.
The index indicated a faster growth in the current month, when compared to its level in the month of May 2019. Twelve of the 14 manufacturing subsectors recorded increased production level, 1 remained unchanged while 1 recorded decline.
The Manufacturing sector inventories index grew for the twenty-seventh consecutive month in June 2019. At 55.0 points, the index grew at a slower rate when compared to its level in May 2019. Ten of the 14 subsectors recorded growth, 2 remain unchanged, while 2 sectors reported declined raw material inventories in the review month.
According to the report, the composite PMI for the nonmanufacturing sector stood at 58.6 points in June 2019, indicating expansion in the twenty-sixth consecutive month. The index grew at a slower rate when compared to its level of 58.8 index point in May 2019.
The June 2019 PMI survey was conducted by the Statistics Department of the Central Bank of Nigeria during the period June 10-14, 2019. 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).
HOPE MOSES-ASHIKE
