CBN: Nigeria’s Manufacturing Index Grows at Slow Pace in September

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Obinna Chima

Activity in the manufacturing sector expanded in September,but at a slow pace compared with the previous month, the Central Bank of Nigeria’s (CBN) manufacturing Purchasing Managers’ Index (PMI) released yesterday has shown.

Specifically, the manufacturing PMI in September stood at 56.2 index points, indicating expansion in the sector for the18th consecutive month.

But the index however, grew at a slower rate when compared to the index in the previous month.

The PMI is an indicator of the economic health of the manufacturing sector.

It is based on five major indicators – new orders, inventory levels, production, supplier deliveries and the employment environment.

According to the report, of the 14 sub-sectors surveyed, 10 reported growth in the review month in the following order – electrical equipment; printing and related support activities;transportation equipment; non-metallic mineral products;chemical and pharmaceutical products; fabricated metal products; furniture and related products; textile, apparel, leather and footwear; food, beverage and tobacco products; and plastics and rubber products.

But petroleum and coal products; cement; paper products andprimary metal sub-sectors, all declined in the review month.

On the other hand, at 58.4 points, the production level index for the sector grew for the 19th consecutive month inSeptember.

The index indicated a slower growth in the current month, when compared to its level in the preceding month.

Ten of the 14 manufacturing sub-sectors recorded increase in production level; one remained unchanged while threedeclined.

Also, at 55.3 points, the new orders index grew for the 18thconsecutive month, indicating increase in new orders in September.

Nine sub-sectors reported growth; two remained unchanged, while three contracted in the review month.

The manufacturing supplier delivery time index stood at 56.1 points in September 2018, indicating faster supplier delivery time for the 16th consecutive month.

Eleven sub-sectors recorded improved suppliers’ delivery time; two remained unchanged while one reported worsening delivery times.

The report posted on the CBN website yesterday, also showed that the employment level index in September 2018 stood at 54.9 points, indicating growth in employment level for the17th consecutive month.

Of the 14 sub-sectors, 12 reported increased employment level, one remained unchanged while one reported reduced employment level in the review month.

“The manufacturing sector inventories index grew for the18th consecutive month in September 2018. At 55.9 points, the index grew at a slower rate when compared to its level in the previous month.

“Ten of the 14 sub-sectors recorded growth, while fourrecorded decline in raw material inventories.

“The composite PMI for the non-manufacturing sector stood at 56.5 points in September 2018, indicating expansion in thenon-manufacturing PMI for the 17th consecutive month.

“The index grew at a slower rate when compared to that in August 2018. In all, 15 of the 17 sub-sectors recorded growth,” the apex bank’s report added.