Economic recovery appears on the rise with the Manufacturing Purchasing Managers’ Index (PMI) standing at 54.1 index points in July 2017, indicating expansion in the manufacturing sector for the fourth consecutive month.
The PMI is an indicator of the economic health of the manufacturing sector, which is based on five major indicators — new orders, inventory levels, production, supplier deliveries and the employment environment.
According to the latest PMI released by the Central Bank of Nigeria (CBN) Tuesday, 11 of the 16 sub-sectors reported growth in the review month in the following order: appliances & components; computer & electronic products; cement; primary metal; chemical & pharmaceutical products; food, beverage & tobacco products; textile, apparel, leather & footwear; printing & related support activities; paper products; electrical equipment and transportation equipment.
But the remaining five sub-sectors declined in the order: petroleum & coal products; fabricated metal products; furniture & related products; non-metallic mineral products and plastics & rubber products.
In the same vein, the production level index for the manufacturing sector grew for the fifth consecutive month in July 2017. The index at 59.3 points indicated an expansion in production at a faster rate when compared to the level recorded in the previous month.
Fourteen of the 16 manufacturing sub-sectors recorded expansion in production level during the review month.
Also, at 52.7 points, new orders index grew for the fourth consecutive month. Eight sub-sectors reported growth, one remained unchanged while the remaining seven declined in the review month.
According to the report, the supplier delivery time index for the manufacturing sector, at 51.3 points in July 2017, rose for the second consecutive month. Ten sub-sectors recorded improved suppliers’ delivery time while the remaining six sub-sectors recorded delayed delivery time.
It also showed that manufacturing employment level index in July 2017 stood at 51.8 points, indicating growth in employment level for the third consecutive month.
According to the report, of the 16 sub-sectors, eight recorded growth, three sub-sectors remained unchanged while the remaining five sub-sectors recorded decline in employment level.
“At 53.6 points, the raw materials inventory index grew for the fourth consecutive month, and at a faster rate compared to its level in June 2017.
“Eleven of the sixteen subsectors recorded growth, two recorded no change while three sub-sectors recorded decline in raw materials inventory.
“New orders index at 55.1 points grew in July 2017 for the fourth consecutive month. Of the eighteen subsectors, 15 reported growth; one remained unchanged while the remaining two recorded declines.
“New orders, employment level and inventory growing at a faster rate; business activity growing at a slower rate in July 2017.
“The business activity index rose to 56.8 points in July 2017 for the fourth consecutive month. The index grew at a slower rate when compared to its level in the previous month. Fourteen sub-sectors recorded growth in business activity; one remained unchanged while the remaining three declined in the review month,” the report stated.