CBN’s Manufacturing Index Sustains Expansion in September

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Nume Ekeghe

The Central Bank of Nigeria’s (CBN) Purchasing Manager’s Index (PMI) for September 2019, has shown an expansion in the economy.

According to the PMI report for September released yesterday, the Manufacturing PMI stood at 57.7 points in the month under review, indicating a slower growth rate, compared to the month of August.

In all, 13 of the 14 surveyed sub-sectors reported growth in the review month in the following order: cement; petroleum & coal products; food, beverage& tobacco products; transportation equipment; printing & related support activities; chemical & pharmaceutical products; furniture & related products; fabricated metal products; non-metallic mineral products; electrical equipment; textile, apparel, leather & footwear; plastics & rubber products; and primary metal. But, the paper products sub-sector recorded decline in the review period.

Also, at 58.5 points, the production level index for the manufacturing sector grew for the 31st consecutive month in September 2019.

The index indicated a slower growth in the current month, when compared to its level in August 2019.

Eleven of the 14 manufacturing sub-sectors recorded increased production level and one remained unchanged.

The report further showed that at 57.2 points, the new orders index grew for the 30th consecutive month, indicating increase in new orders in September 2019.

The index grew at a faster rate, when compared to its level in August 2019. Nine subsectors reported growth, 1 remained unchanged, while 4 contracted in the review month.

On the other hand, the non-Manufacturing PMI report showed that business activity, new orders and inventories grew at a slower rate, while employment level grew at a faster rate in September 2019.

The composite PMI for the non-manufacturing sector stood at 58 points in September 2019, indicating expansion in the non-manufacturing PMI for the 29th consecutive month.

It further stated: “The index grew at a slower rate when compared to its level in August 2019. Fourteen of the 17 surveyed subsectors recorded growth in the following order: utilities; information & communication; wholesale/retail trade; arts, entertainment & recreation; transportation & warehousing; agriculture; repair, maintenance/ washing of motor vehicles; construction; finance & insurance; accommodation and food services; educational services; health care & social assistance; real estate rental & leasing; and electricity, gas, steam & air conditioning supply.”