Why Nigeria’s January manufacturing PMI fell to 48.2 – CBN

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The country’s manufacturing activity fell to 48.2 index points in January 2017, down from 52.0 recorded in December, the Central Bank of Nigeria said in its Purchasing Managers’ Index released on Tuesday.

The report showed that while the manufacturing PMI dropped to  48.2 index points, the non-manufacturing  PMI stood at  49.4 points, indicating a slower decline compared with the 47.1 points recorded for December 2016.

In the PMI report posted on its website, the CBN said, “A composite PMI above 50 points indicates that the manufacturing/ non-manufacturing economy is generally expanding, 50 points indicate no change and below 50 points indicate that it is generally declining.”

Though the manufacturing PMI grew in December 2016, it had recorded declines for eleven consecutive months and averaged 45.2 in the last 12 months.

The report showed that 10 of the 16 subsectors surveyed recorded decline in the month under review while the remaining six subsectors expanded.

The six sectors are: petroleum  and coal  products;  appliances  and components;  nonmetallic  mineral  products;  food,  beverage  and  tobacco  products;  textile,  apparel, leather and footwear; and computer and electronic products

Despite the decline in manufacturing activity, however, the report showed that the production level  index for  the manufacturing sector grew for  the  second  consecutive  month, standing  at  51.3  points,  indicating  a  slower  growth  when compared  to  the 57.6 points  in  the month  of December  2016.

But this did not have any impact on new orders as well as suppliers’ delivery time during the period as they both declined with the latter standing at 48.5 index points while the former stood at 47.9 points.

Also, the report showed that the employment level index for the January manufacturing PMI stood at 45.3 points, indicating a decline in employment level for the 23rd consecutive month.

Similarly, the report showed that the employment level index for the non-manufacturing sector PMI declined for the 13th consecutive month in January 2017.

However, the report stated that at 45.6points, the index declined at a slower rate compared with the 43.8 points recorded in December 2016.

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Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

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