The Central Bank of Nigeria (CBN) on Wednesday, released the Purchasing Managers Index (PMI), which showed that the manufacturing sector of the economy expanded for 19 consecutive months in October.
The Manufacturing PMI in the month of October stood at 56.8 index points, indicating that it grew at a faster rate when compared to 56.2 index in the previous month.
13 out of 14 sub-sectors reported growth in the review month. These include electrical equipment – 65.8; petroleum and coal products – 61.9; printing and related support activities – 61.5; cement – 59.2; chemical and pharmaceutical products – 59.1; textile, apparel, leather and footwear – 57.9; furniture and related products – 57.5; transportation equipment – 57.0; plastics and rubber products – 56.2; food, beverage and tobacco products – 55.6; fabricated metal products – 55.2; non-metallic mineral products – 54.2; and paper products – 53.4. The primary metal subsector declined in the review month.
The October 2018 PMI survey was conducted by the Statistics Department of the Central Bank of Nigeria during the period October 8-12, 2018. 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 PMI report revealed that production level, new orders, supplier delivery time and inventories grew at a faster rate; employment level grew at a slower rate in October 2018.
The composite PMI for the non-manufacturing sector stood at 57.0 points in October 2018, indicating expansion in the Non-manufacturing PMI for the eighteenth consecutive month. The index grew at a faster rate when compared to its level 65.5 in September 2018.
The non-manufacturing PMI report show that Business activity, new orders, employment level and inventories grew at a faster rate in October 2018.
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.