The Purchasing Managers Index (PMI) of the manufacturing sector dropped by a difference of -1.4 to 57.1 points in February compared to 58.5 index point recorded in January.
The PMI report released on Wednesday by the Central Bank of Nigeria (CBN) shows an expansion for the 23rd consecutive month but on a slower rate.
Ayodeji Ebo, managing director, Afrinvest Securities Limited said this may be attributed to electioneering as businesses might have held back on their investment decisions until the conclusion of the elections.
According to the report, production level, new orders, supplier delivery time, employment level and inventories grew at a slower rate in February 2019.
Consequently, 13 out of 14 subsectors surveyed reported growth in the review month. These include petroleum and coal products; electrical equipment; transportation equipment; plastics and rubber products; food, beverage and tobacco products; textile, apparel, leather and footwear; non-metallic mineral products; chemical and pharmaceutical products; furniture and related products; printing and related support activities; cement; fabricated metal products; and paper products. The primary metal subsector recorded decline in the review period.
At 57.5 points, the production level index for the manufacturing sector grew for the 24th consecutive month in February 2019 compared to 59.3 points in January. The index indicated a slower growth in the current month, when compared to its level in the preceding month.
The new orders index grew by 56.9 points for the 23rd consecutive month, indicating increase in new orders in February 2019.
The manufacturing supplier delivery time index stood at 58.2 points in February 2019, indicating slower supplier delivery time. The index has recorded growth for 21 consecutive months as all 14 subsectors recorded improved suppliers’ delivery time in the review period.
In the PMI report, the manufacturing sector inventories index grew for the 23rd consecutive month in February 2019, at 56.2 points, growing at a slower rate when compared to its level in January 2019. Nine of the 14 subsectors recorded growth, one was unchanged, while 4 reported declined raw material inventories in the review month.
The composite PMI for the non-manufacturing sector stood at 58.4 points in February 2019, indicating expansion in the Non-manufacturing PMI for the 22nd consecutive month. The index grew at a slower rate when compared to 60.1 point in January 2019. All 17 surveyed subsectors recorded growth.
Business activities in the non-manufacturing sector grew at a slower rate by 59.7 points when compared to 61.7 point level in the previous month.
HOPE MOSES-ASHIKE
