By Isaac Anumihe
Nigeria’s manufacturing Purchasing Managers’ Index PMI fell to 48.2 per cent in January 2017, indicating a decline in the manufacturing sector for the year.
A report on the Purchasing Managers Index (PMI) conducted by the Central Bank of Nigeria (CBN) shows that production level grew at a slower rate, new orders declined from expansion in December 2016, while suppliers delivery time worsened, employment level declining faster and raw material inventories declining from expansion in December 2016.
According to the CBN survey the production level index for manufacturing sector grew for the second consecutive month. The index stood at 51.3 points, indicating a slower growth when compared to the 57.6 points in the month of December 2016.
Index for new orders also declined to 47.9 points after one month of expansion recorded in December 2016.
At 48.5 index points, the supplier delivery time index for manufacturing sub-sector worsened for the second consecutive month, but at a slower rate in the month of January 2017.
Similarly employment level index in the month of January 2017 stood at 45.3 points, indicting declines in employment level for the 23rd consecutive month. However, the index declined at a faster rate when compared with the level in the preceding month.
In its monthly survey of purchasing and supply executives of manufacturing and non-manufacturing in 13 locations in Nigeria, the Statistics Department, Central Bank of Nigeria (CBN), said that the index averaged 45.2 in the last twelve months, and had grown in December 2016 after recording declines for eleven consecutive months.
It said that 10 of the 16 sub sectors surveyed recorded decline in the review month in the following order: primary metal; transportation equipment; paper products; electrical equipment; fabricated metal products; printing & related support activities; cement; furniture & related products; plastics & rubber products and chemical & pharmaceutical products.
“The remaining six subsectors are expected to expand in the order: petroleum & coal products; appliances & components; nonmetallic mineral products; food, beverage & tobacco products, textile, apparel, leather & footwear and computer & electronic products” the index released on the bank’s website said.
However, the production level index for manufacturing sector grew for the second consecutive month. Whereas the index stood at 51.3 points, indicating a slower growth when compared to the 57.6 points in the month of December 2016, nine manufacturing sub sectors recorded growth in production level during the review month.
in the following order: nonmetallic mineral products; computer & electronic products; appliances & components; food, beverage & tobacco products; petroleum & coal products; cement; chemical & pharmaceutical products; textile, apparel, leather & footwear and furniture & related products.
For the plastics & rubber products subsector, the survey recorded no change, while the remaining six subsectors declined in the review period in the order: primary metal; transportation equipment; paper products; fabricated metal products; electrical equipment and printing & related support activity.
“The index for new orders declined to 47.9 points after one month of expansion recorded in December 2016. The eight sub sectors that declined in new orders were primary metal; paper products; printing & related support activities; fabricated metal products; electrical equipment; transportation equipment; cement and furniture & related products. The chemical & pharmaceutical products sub-sector remained unchanged, while new orders for the remaining seven sub-sectors grew in the order petroleum & coal products; appliances & components; computer & electronic products; plastics & rubber products; textile, apparel, leather & footwear; nonmetallic mineral products and food, beverage & tobacco products” CBN, said, but said that at 48.5 index points the supplier delivery time index for manufacturing sub-sectors
worsened for the second consecutive month but at a slower rate in the month of January 2017.
It said that the index had recorded nine consecutive periods of improvement as at November 2016. Ten sub sectors, the survey, explained, recorded worsening suppliers delivery time in the following order: plastics & rubber products; petroleum & coal products; chemical & pharmaceutical products; transportation equipment; appliances & components; cement; nonmetallic mineral products; food, beverage & tobacco products; furniture & related products and textile, apparel, leather & footwear. The computer & electronic products subsector, it noted, remained unchanged, while the electrical equipment; primary metal; printing & related support activities; fabricated metal products and paper products sub-sectors recorded improving delivery time in January.
Similarly, employment level index in the month of January 2017 stood at 45.3 points indicating declines in employment level for the 23rd consecutive month. However, the index declined at a faster rate when compared with the level in the preceding month of the 16 subsectors. Twelve recorded declines in the following order: electrical equipment; computer & electronic products; appliances & components; cement; printing & related support activities; nonmetallic mineral products; furniture & related products; paper products; chemical & pharmaceutical products; fabricated metal products; food, beverage & tobacco products and textile, apparel, leather & footwear, it said.
“The plastics & rubber products; primary metal ;and transportation equipment subsectors remained unchanged, while only the petroleum & coal products. Sub sector recorded growth during the review period” CBN, said. ENDS