Manufacturing PMI Expands 33rd Consecutive Month to 60.8% in December 2019

December 30, 2019/CBN

Introduction 

The December 2019 PMI survey was conducted by the Statistics Department of the Central Bank of Nigeria during the period December 10-14, 2019. The respondents were purchasing and supply executives of manufacturing and non-manufacturing organizations in all 36 states in Nigeria and the Federal Capital Territory (FCT). The Bank makes no representation regarding the individual companies, other than the information they have provided. The data contained herein further provides input for policy decisions

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 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 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, namely: production level, level of new orders, suppliers’ delivery time, employment level and raw materials inventory/work in progress, 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, namely: business activity, level of new orders, employment level and raw materials 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.

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Manufacturing PMI Report 

The Manufacturing PMI in the month of December stood at 60.8 index points, indicating expansion in the manufacturing sector for the thirty-third consecutive month (Fig. 2 and Table 1). The index grew at a faster rate when compared to the index in November. All the 14 surveyed subsectors reported growth in the review month in the following order: petroleum & coal products; transportation equipment; plastics & rubber products; food, beverage & tobacco products; fabricated metal products; furniture & related products; primary metal; chemical & pharmaceutical products; printing & related support activities; textile, apparel, leather & footwear; cement; paper products; electrical equipment; and nonmetallic mineral products (Fig. 2 and Table 1).

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Production Level 

At 61.8 points, the production level index for manufacturing sector grew for the thirty-fourth consecutive month in December 2019. The index indicated a faster growth in the current month, when compared to its level in November 2019. Eleven of the 14 manufacturing subsectors recorded increased production level, 2 remained unchanged while 1 recorded decline (Fig. 3 and Table 2).

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New Orders 

At 61.5 points, the new orders index grew for the thirty-third consecutive month, indicating increase in new orders in December 2019. The index grew at a faster rate, when compared to its level in November 2019. Twelve subsectors reported growth, 1 remained unchanged while 1 recorded decline in the review month (Fig. 4 and Table 3).

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Supplier Delivery Time 

The manufacturing supplier delivery time index stood at 60.5 points in December 2019, indicating faster supplier delivery time. The index has recorded growth for thirty-one consecutive months. Twelve of the 14 subsectors recorded improved suppliers’ delivery time, while 2 declined in the review period (Fig. 5 and Table 4).

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Employment Level

The employment level index for December 2019 stood at 58.0 points, indicating growth in employment level for the thirty-second consecutive month. Of the 14 subsectors, 10 reported increased employment level, 3 reported unchanged employment level while 1 reported decreased employment in the review month (Fig. 6 and Table 5).

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Raw material Inventories 

The Manufacturing sector inventories index grew for the thirty-third consecutive month in December 2019. At 62.4 points, the index grew at a faster rate when compared to its level in November 2019. Twelve of the 14 subsectors record ed growth, while 2 reported declined raw material inventories in the review month (Fig. 7 and Table 6).

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