The Central Bank of Nigeria (CBN) on Thursday, released the first Purchasing Managers Index (PMI) for the year, which revealed that the manufacturing sector of the economy expanded for the 22nd consecutive times but on a slower rate.
The PMI for the month of January 2019 stood at 58.5 index points, compared to 61.1 index points recorded in December 2018.
Ayodele Akinwunmi, head of research, FSDH Merchant Bank Limited, said the slower growth in the PMI was on account of seasonality effects that are usually associated with the slow production activities in January.
According to the report, the production level, new orders, supplier delivery time, employment level and inventories grew at a slower rate in January 2019.
However, in spite of the slow growth, All 14 subsectors surveyed reported growth in the review month. These include petroleum and coal products; chemical and pharmaceutical products; primary metal; paper products; cement; furniture and related products; printing and related support activities; fabricated metal products; electrical equipment; food, beverage and tobacco products; non-metallic mineral products; textile, apparel, leather and footwear; plastics and rubber products; and transportation equipment.
At 59.3 points, the production level index for the manufacturing sector grew for the 23rd consecutive month in January 2019. The index indicated a slower growth in the current month, when compared to its level of 63.6 points in the preceding month.
The report showed that 12 of the 14 manufacturing subsectors recorded increased production level, while 2 remained unchanged.
The Manufacturing sector inventories index grew for the twenty-second consecutive month in January 2019. At 59.9 points, the index grew at a slower rate when compared to its level of 63.2 index points in December 2018. The report revealed that 12 of the 14 subsectors recorded growth, one recorded unchanged, while one reported declined raw material inventories in the review month.
The composite PMI for the non-manufacturing sector stood at 60.1 points in January 2019, indicating expansion in the Non-manufacturing PMI for the twenty-first consecutive month. The index grew at a slower rate when compared to 62.3 index point in December 2018.
The report show that out of the 17 surveyed subsectors, 16 recorded growth in the review period. At 61.7 points, the business activity index grew for the twenty-second consecutive month, indicating expansion in non-manufacturing business activity in January 2019. The index grew at a slower rate when compared to its level in the previous month. Fifteen subsectors recorded growth in business activity while two remained unchanged in the review month.
HOPE MOSE-ASHIKE
