The Central Bank of Nigeria
Nigeria’s Purchasing Managers Index (PMI) expanded marginally in the month of June to 57.0 percent. This is 0.5 percentage points higher than the 56.5 percent reported for May.
The index expansion in June indicates fifteenth consecutive month of expansion in the manufacturing sector. The index for the month under review also grew at a faster rate when compared to the index in the previous month, as compiled from the CBN website.
The index performance in the 6th month of the year 2018 was linked to improved dollar liquidity and greater availability of raw materials, as the Central Bank of Nigeria (CBN) has continued to periodically inject dollar into the FX market. This has made the naira relatively stable in the H1 of this year, analysts noted.
A composite PMI above 50 points indicates that the manufacturing/non-manufacturing economy is generally expanding, 50 points indicates no change and below 50 points indicates that it is generally contracting.
Of the 14 subsectors surveyed, 10 reported growth in the review month in the following order: paper products; furniture & related products; printing & related support activities; food, beverage & tobacco products; plastics & rubber products; electrical equipment; textile, apparel, leather & footwear; chemical & pharmaceutical products; petroleum & coal products and nonmetallic mineral products. The transportation equipment; fabricated metal products; primary metal; and cement subsectors declined in the review month.
A further breakdown of the CBN survey on the PMI for the month of June showed that at 59.2 points, the production level index for the manufacturing sector grew for the sixteenth consecutive month in June 2018. The index indicated a faster growth in the current month, when compared to its level in the preceding month. Ten of the 14 manufacturing subsectors recorded increase in production level, 1 remained unchanged, while the remaining 3 recorded declines in production level during the review month
At 56.2 points, the new orders index grew for the fifteenth consecutive month, indicating increase in new orders in June 2018. Eight subsectors reported growth, 2 remained unchanged while 4 contracted in the review month.
The manufacturing supplier delivery time index stood at 56.5 points in June 2018, indicating slower supplier delivery time for the thirteenth consecutive month. Eight subsectors recorded improved suppliers’ delivery time, while 6 remained unchanged.
The employment level index in June 2018 stood at 55.4 points, indicating growth in employment level for the fourteenth consecutive month. Of the 14 subsectors, 7 reported increased employment level, 4 remained unchanged while 3 reported reduced employment level in the review month.
The Manufacturing sector inventories index grew for the fifteenth consecutive month in June 2018. At 57.7 points, the index grew at a slower rate when compared to its level in the previous month. Eleven of the 14 subsectors recorded growth, 2 remained unchanged while 1 recorded decline in raw material inventories
