Manufacturing PMI steadies at 46.0 – CBN
The decline in manufacturing activities in the country appears to be bottoming out as the Central Bank of Nigeria's manufacturing Purchasing Managers' Index (PMI) declined at a slower pace in November compared with the rate of drop in the previous month, according to the report posted on the Apex Bank's website yesterday.
'The Manufacturing PMI stood at 46.0 index points in November 2016, indicating a slowing decline in the manufacturing sector during the review period, but a marginal improvement compared with the previous month level.'
The report showed that twelve of the sixteen sub-sectors surveyed recorded declines in the review month while four subsectors such as cement, food, beverage & tobacco products; plastics & rubber products and electrical equipment, recorded growth.
Sub sectors that declined include, computer /electronic products; primary metal; petroleum/ coal products; transportation equipment; furniture / related products; printing/related support activities; non-metallic mineral products; fabricated metal products; chemical/pharmaceutical products; textile, apparel, leather/ footwear; paper products; and appliances and components.
Also, the report showed the production level index for manufacturing sector declined for the eleventh consecutive month, at 46.9 index points. It, however, showed marginal improvement compared with the index recorded in October 2016.
According to the report: 'Ten manufacturing sub-sectors recorded declines in production level during the review month in the following order: primary metal; petroleum and coal products; computer and electronic products; transportation equipment; furniture and related products; fabricated metal products; nonmetallic mineral products; paper products; chemical and pharmaceutical products; and printing and related support activities.'
However, not all sub sectors in this category recorded declines during the review period as the appliances and components subsector remained unchanged, while the remaining five subsectors- cement; food, beverage and tobacco products; electrical equipment; plastics and rubber products; and textile, apparel, leather and footwear- grew.
Similarly, the new orders index declined for the eleventh consecutive month standing at 45.1points. Again, the index showed an improvement as the index declined at a slower rate when compared to the 38.7 index points in October 2016.
Significantly, the manufacturing PMI report showed that the employment level index in the month of November 2016 stood at 40.6points, indicating declines in employment level for the twenty-first consecutive month.
According to the report, the index declined at a faster rate when compared with the level in the preceding month. Interestingly, while decline in the manufacturing PMI seems to be slowing, the CBN report showed that composite PMI for the non-manufacturing sector declined for the eleventh consecutive month at 42.8 points, indicating a faster decline when compared to the index in October 2016.
The report said: 'Of the eighteen non-manufacturing sub-sectors, sixteen recorded declines in the following order: public administration; water supply, sewage and waste management; construction; information and communication; professional, scientific and technical services; electricity, gas, steam and air conditioning supply; accommodation and food services; real estate, rental and leasing; management of companies; wholesale trade; utilities; repair, maintenance/washing of motor vehicles; arts, entertainment and recreation; transportation & warehousing; health care and social assistance and educational services.'