By Nse Anthony-Uko
(Sundiata Post) — The Central Bank of Nigeria (CBN) has disclosed that its Purchasing Managers’ Index (PMI) increased to 59.3 index points in December, a record high in 2017. The apex bank had report PMI of 55.9 index points in November, from 55 Index points in October and 55.3 Index points in September.
The PMI survey, an indicator of the economic health of the manufacturing sector opened the year at 48.2 Index points. The CBN said there was expansion in the manufacturing sector for the ninth consecutive month in 2017, attributable to stability in foreign exchange market.
The apex bank based its composite PMI for the manufacturing sector on five indicators that include production, new orders, supplier delivery time, employment level and raw materials inventory. The PMI survey by CBN revealed that 15 of the 16 subsectors reported growth in the review month in the following order petroleum & coal products; textile, apparel, leather and footwear.
Other subsector that increased include, cement; transportation equipment; paper products; food, beverage & tobacco products; furniture & related products; plastics & rubber products; nonmetallic mineral products; printing & related support activities; appliances and components; chemical & pharmaceutical products; fabricated metal products; primary metal and electrical equipment. However, the computer & electronic product sector contracted in the review month, the report by CBN stated.
According to CBN’s PMI survey report, the production level closed at 63.2 points, a tenth consecutive month growth in December 2017. “The index indicated an increase in production in the current month, when compared to its level in the preceding month. 11 of the 16 manufacturing subsectors recorded increase in production level, three remained unchanged, while the remaining two recorded declines in production level during the review month,” the report said.
The report on new orders stated that the index grew to 60 points in December, a nine consecutive increase month, indicating increase in new orders in December 2017. “13 subsectors reported growth, two remained unchanged while one contracted in the review month,” the PMI report by CBN said.
Also, the manufacturing supplier delivery time index stood at 57.4 points in December 2017, indicating faster supplier delivery time for the seventh consecutive month. “11 subsectors recorded improved suppliers’ delivery time, one remained unchanged while four subsectors recorded delayed delivery time,” the survey report said.
On employment Level, the survey report said, “The employment level index in December 2017 stood at 53.9 points, indicating growth in employment level for the eighth consecutive month. “Of the 16 subsectors, ninth subsectors increased their employment level, three remained unchanged while fourth subsectors reduced their employment level in the review month.
“The Manufacturing sector inventories index grew for the ninth consecutive months in December 2017. At 61.1 points, the index grew at a faster rate when compared to its level in the previous months. Eleven of the 16 subsectors recorded growth, three remained unchanged while two subsectors recorded decline in raw material inventories,” the survey report on inventories index added.