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Nigeria’s Manufacturing Pmi Grows To 57.8% In May 2019
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The Manufacturing PMI in the month of May stood at 57.8 index points, indicating expansion in the manufacturing sector for the twenty-sixth consecutive month. The index grew at a faster rate when compared to the index in the previous month.

Thirteen of the 14 subsectors surveyed reported growth in the review month in the following order: transportation equipment; electrical equipment; petroleum & coal products; paper products; cement; food, beverage & tobacco products; plastics & rubber products; chemical & pharmaceutical products; fabricated metal products; furniture & related products; nonmetallic mineral products; textile, apparel, leather & footwear and printing & related support activities. The primary metal subsector recorded decline in the review period.

The May 2019 PMI survey was conducted by the Statistics Department of the Central Bank of Nigeria during the period May 6-10, 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

At 59.1 points, the production level index for the manufacturing sector grew for the twenty-seventh consecutive month in May 2019. The index indicated a faster growth in the current month when compared to its level in the month of April 2019. Eleven of the 14 manufacturing subsectors recorded an increased production level, while 3 recorded decline.

At 56.9 points, the new orders index grew for the twenty-sixth consecutive month, indicating an increase in new orders in May 2019. Eight subsectors reported growth, 1 remained unchanged, while 5 contracted in the review month.

The manufacturing supplier delivery time index stood at 58.4 points in May 2019, indicating faster supplier delivery time. The index has recorded growth for twenty-four consecutive months. Twelve of the 14 subsectors recorded improved suppliers’ delivery time, while 1 remained unchanged and 1 recorded decline in the review period.

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 contractions are listed in the order of the highest to the lowest contraction.

SOURCE: https://brandspurng.com/2019/05/22/niger...-may-2019/

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