PMI Grows at Slow Pace in January

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Obinna Chima

The Manufacturing Purchasing Managers’ Index (PMI) stood at 59.2 index points in January, indicating expansion in the manufacturing sector for the 34th consecutive month.

In the review month, the index grew at a slower rate when compared to December. 

According to the Central Bank of Nigeria’s (CBN) PMI report for January 2020, released at the weekend, revealed that of the 14 surveyed sub-sectors, 11 reported growth, in the review month in petroleum and coal products; transportation equipment; paper products; furniture and related products; plastics and rubber products; primary metal; food, beverage and tobacco products; chemical and pharmaceutical products; fabricated metal products; textile, apparel, leather and footwear and cement. 

It, however, revealed that electrical equipment sub-sector remained unchanged while printing and related support activities and non-metallic mineral products recorded decline.

“At 59.6 points, the production level index for manufacturing sector show growth for the 35th consecutive month in January 2020. 

“However, the index indicated a slower growth in the current month, when compared to its level in December 2019. Nine of the 14 manufacturing sub-sectors recorded increased production level, three remained unchanged while two recorded decline,” the report added.

Also, it showed that at 59.7 points, the new orders index grew for the 34th consecutive month, indicating increases in new orders in January 2020. 

The index, according to the report grew at a slower rate, when compared to its level in December 2019. 

In all, 10 sub-sectors reported growth, two remained unchanged while two recorded decline in the review month.

“The manufacturing supplier delivery time index stood at 59.1 points in January 2020, indicating slower supplier delivery time. The index has recorded growth for thirty-two consecutive months. 

“Twelve of the 14 sub-sectors recorded improved suppliers’ delivery time, while two reported slower delivery time in the review period,” it added