Again, Manufacturing PMI Maintains Expansion

Obinna Chima

The Manufacturing Purchasing Managers’ Index (PMI) stood ay 56.8 index points in July, indicating an expansion in the manufacturing sector for the 16th consecutive month.

The index however grew at a slower rate when compared to the index in the previous month.

According to the PMI report for July, of the 14 sub-sectors surveyed, 13 reported growth in the review month in the following order: petroleum and coal products; printing and related support activities; paper products; electrical equipment; primary metal; furniture and related products; non-metallic mineral products; transportation equipment; textile, apparel, leather and footwear; chemical anf pharmaceutical products; food, beverage and tobacco products; cement; and fabricated metal products. However, the plastics and rubber products sub-sector declined in the review month.

On the other hand, at 59 points, the production level index for the manufacturing sector grew for the 17th consecutive month in July 2018.

The report showed that the index indicated a slower growth in the current month, when compared to its level in the preceding month.

In all, 12 of the 14 manufacturing sub-sectors recorded increase in production level, while two remained unchanged.

Also, the report showed that at 55.8 points, the new orders index grew for the 16th consecutive month, indicating increase in new orders in July 2018. Similarly, 12 sub-sectors reported growth, while two contracted in the review month.

Furthermore, the report showed that the manufacturing supplier delivery time index stood at 56.8 points in July 2018, indicating faster supplier delivery time for the fourteenth consecutive month.

Nine sub-sectors recorded improved suppliers’ delivery time, three remained unchanged while two contracted.

“The composite PMI for the non-manufacturing sector stood at 57.7 points in July 2018, indicating expansion in the non-manufacturing PMI for the 15th consecutive month.”