Manufacturing Index Sustains Improvement in July

Nume Ekeghe

The Central Bank of Nigeria’s (CBN) Purchasing Manager’s Index (PMI) for the month of July 2019, has shown expansion in the economy.

According to the PMI report for July released Wednesday, showed that Manufacturing PMI stood at 57.6 points in July, compared with the 57.4 points recorded in June. This indicated an expansion in the manufacturing sector for the 28th consecutive month.

The index grew at a faster rate when compared to the index in the previous month, according to the report.

Of the 14 sub-sectors surveyed, 13 reported growth in the review month in the following order: petroleum & coal products; transportation equipment; cement; printing & related support activities; paper products; food, beverage & tobacco products; furniture & related products; fabricated metal products; nonmetallic mineral products; plastics & rubber products; primary metal; chemical & pharmaceutical products; and electrical equipment. The textile, apparel, leather & footwear sub-sector recorded decline in the review period.

At 58.9 points, the production level index for the manufacturing sector also grew for the 29th consecutive month in July 2019. The index indicated a slower growth in the current month, when compared to its level in the month of June 2019.

In the same vein, the new orders index grew for the 28th consecutive month at 57.2 points, indicating increase in new orders in July 2019. Eleven sub-sectors reported growth, one remained unchanged, while two contracted in the review month

“The employment level index of Manufacturing PMI for July 2019 stood at 57.3 points, indicating growth in employment level for the 27th consecutive month. Of the 14 sub-sectors, 10 reported increased employment level, one reported unchanged employment level while three reported decreased employment in the review month.

The composite PMI for the non-manufacturing sector stood at 58.7 points in July 2019, indicating expansion in the Non-manufacturing PMI for the 27th consecutive month. The index grew at a faster rate when compared to its level in June 2019.

“All 17 surveyed subsectors recorded growth in the following order: management of companies; arts, entertainment & recreation; finance & insurance; repair, maintenance/washing of motor vehicles; construction; real estate rental & leasing; agriculture; health care & social assistance; information & communication; accommodation & food services; wholesale/retail trade; water supply, sewage & waste management; transportation & warehousing; electricity, gas, steam & air conditioning supply; professional, scientific, & technical services; educational services; and utilities.”