Manufacturing PMIs takes slower decline to 45.8 points

The Manufacturing Purchasing Managers Index (PMI) rose to 45.8 index points in May 2016, compared to 43.7 in the preceding month, according to the Central Bank of Nigeria (CBN).

According to the CBN, eleven out of the sixteen manufacturing sub-sectors recorded decline in the review month.

They include primary metal; paper products; petroleum & coal products; furniture & related products; fabricated metal products; printing & related support activities; nonmetallic mineral products; electrical equipment; textile, apparel, leather & footwear; food, beverage & tobacco products and chemical & pharmaceutical products.

The remaining five sub-sectors however recorded expansion in the following order: computer & electronic products; appliances and components; cement; plastics & rubber products and transportation equipment.

Of the sixteen manufacturing sub-sectors, ten recorded declines in production level during the review month in the following order: primary metal; petroleum & coal products; electrical equipment; printing & related support activities; paper products; fabricated metal products; nonmetallic mineral products; furniture & related products; textile, apparel, leather & footwear and food, beverage & tobacco products.

The transportation equipment sub-sector recorded no change. The remaining five recorded growth in production level during the review month in the following order: cement; plastics & rubber products; appliances & components; chemical & pharmaceutical products and computer & electronic products

The new orders index rose to 43.2 index points in May 2016, but still indicating a decline for the fifth consecutive month. The twelve sub-sectors that recorded declines in new orders were: primary metal; petroleum & coal products; transportation equipment; fabricated metal products; furniture & related products; paper products; printing & related support activities; nonmetallic mineral products; textile, apparel, leather & footwear; chemical & pharmaceutical products; electrical equipment and food, beverage & tobacco products.

The appliances & components sub-sector recorded no change. The remaining three sub-sectors recorded growth in new orders as follows: computer & electronic products; plastics & rubber products and cement.

However, at 52.4 index points, the supplier delivery time index for manufacturing sub-sectors improved for the month of May 2016. The index recorded improved supplier delivery time for four consecutive months. Eight sub-sectors recorded improving suppliers’ delivery time in the following order: transportation equipment; plastics & rubber products; petroleum & coal products; chemical & pharmaceutical products; paper products; primary metal; fabricated metal products and textile, apparel, leather & footwear. The appliances & components sub-sector remained unchanged.

The remaining seven subsectors recorded worsening delivery time in May in the following order: electrical equipment; food, beverage & tobacco products; computer & electronic products; nonmetallic mineral products; cement; printing & related support activities and furniture & related products.

HOPE MOSES-ASHIKE