CBN Says Manufacturing PMI Grew 55.3% in September 2017 from 53.6% in August 2017

September 29, 2017/CBN

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The September 2017 PMI was conducted by the Statistics Department of the Central Bank of Nigeria during the period September 11 – 15, 2017. The respondents were purchasing and supply executives of manufacturing and non-manufacturing organizations in 13 locations in Nigeria (2 states in each geopolitical zone and the Federal Capital Territory, Fig. 1). A total of 1,625 responses were received from a sample of 1,950 respondents, representing a response rate of 83.3 per cent.

The Bank makes no representation regarding the individual companies, other than the data they provided. The data contained herein further provides input for policy decisions.

Map of Nigeria with showing the survey locations 

Data and Method of Presentation
The Manufacturing and Non-Manufacturing PMI Report on businesses is based on survey responses indicating the changes in the level of business activities in the current month compared with the preceding month. For each of the indicators measured, this report shows the diffusion index of the responses. 

The diffusion index is computed as the percentage of responses with positive change plus one-half of the percentage of those reporting no change, except for supplier delivery time, which is computed as the percentage of responses with negative change plus one half of the percentage of those reporting no change.

The composite PMI for the manufacturing sector is computed as the weighted average of five diffusion indices: production level, new orders, supplier delivery time, employment level and raw materials inventory, with assigned weights of 25%, 30%, 15%, 10% and 20%, respectively.

The composite PMI for the non-manufacturing sector is computed from four diffusion indices: business activity, new orders, employment level and inventory, with equal weights of 25% each. 

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.  

The subsectors reporting growth are listed in the order of highest to lowest growth, while those reporting contraction are listed in the order of the highest to the lowest contraction. 

Manufacturing PMI Report
Production level, new orders, supplier delivery time, employment level and raw material inventories growing at a faster rate in September 2017 

The Manufacturing PMI stood at 55.3 index points in September 2017, indicating expansion in the manufacturing sector for the sixth consecutive month (Fig. 3 and Table 1).  

Fourteen of the sixteen subsectors reported growth in the review month in the following order: appliances & components; electrical equipment; chemical & pharmaceutical products; nonmetallic mineral products; printing & related support activities; plastics & rubber products; food, beverage & tobacco products; furniture & related products; transportation equipment; cement; paper products; computer & electronic products; textile, apparel, leather & footwear and fabricated metal products. 

The primary metal and petroleum & coal products subsectors contracted in the review month. 

Production Level
The production level index for the manufacturing sector grew for the seventh consecutive month in September 2017. At 58.8 points, the index indicated an increase in production at a faster rate, when compared to its level in the preceding month. 

Thirteen of the sixteen manufacturing subsectors recorded increase, while three subsectors declined during the review month (Fig. 4 and Table 2)

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