By Mike Abbah
Godwin Emefiele, CBN Governor
Latest report from the Central Bank of Nigeria (CBN) revealed that business activities in the Nigerian economy continued to improve in the month of October although at a slower rate compared to the month of September.
This revelation is contained in the CBN Purchasing Manufacturing Index (PMI) published yesterday showing a drop to 55 index points in October from 55.3 Index points in September representing a slow-down of 0.3 index points
The Bank said that, despite the marginal decline, there was expansion in the manufacturing sector for the seventh consecutive month.
The Purchasing Managers’ Index (PMI) Survey Report is an indicator of the economic health of the manufacturing sector.
The CBN said it 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 report revealed that 11 of the 16 subsectors reported growth in the review month.
The sub-sectors are “plastics & rubber products; paper products; nonmetallic mineral products; chemical & pharmaceutical products; textile, apparel, leather and footwear; food, beverage & tobacco products; furniture and related products; primary metal; electrical equipment; printing and related support activities; and fabricated metal products.
“The appliances and components subsector remained unchanged, while remaining 4 subsectors contracted in this order: computer and electronic products; petroleum and coal products; cement; and transportation equipment.”
According to the apex bank, the production level index for manufacturing sector grew for the eighth consecutive month in October 2017.
The report stated: “At 58.4 points, the index indicated an increase in production at a slower rate, when compared to its level in the preceding month,” the report said.
“At 52.8 points, the new orders index grew for the seventh consecutive month. Seven subsectors reported growth, two remained unchanged while seven contracted in the review month.”
Furthermore, survey on supplier delivery time and employment level index in October disclosed that supplier delivery time index for the manufacturing sector, at 55.5 points in October 2017, rose for the fifth consecutive month.
Giving further details, the report revealed that eleven subsectors recorded improved suppliers’ delivery time, three remained unchanged while two subsectors recorded delayed delivery time.
“The employment level index in October 2017 stood at 53.1 points, indicating growth in employment level for the sixth consecutive month. Of the 16 subsectors, seven recorded growth, four remained unchanged while five subsectors reduced their employment level in the review month.”
“At 56.5 points, inventories index grew for the seventh consecutive month, and at a faster rate when compared to its level in September 2017. 10 of the 16 subsectors recorded growth, two remained unchanged while four subsectors recorded decline in raw material inventories,” said CBN.
