February PMI index falls

By Moses Obajemu

The February 2019 overall manufacturing  purchasing managers index (PMI) has contracted to 57.1 percent as against 59 percent recorded in January.

According to the report of the February purchasing managers index (PMI) released by the Central Bank of Nigeria (CBN), the contraction shows a slower growth in the manufacturing activities in the country in February.

The February 2019 PMI survey was conducted by the Statistics Department of the Central Bank of Nigeria during the period February 11-15, 2019. The respondents were purchasing and supply executives of manufacturing and non-manufacturing organizations in all 36 states in Nigeria and the Federal Capital Territory (FCT).

  The Manufacturing and Non-Manufacturing PMI Report on businesses is based on survey responses, indicating the changes in the level of business activities in the current month compared with the preceding month.

According to the report prepared by the Statistics department of the CBN,  thirteen of the 14 subsectors surveyed reported growth in the review month in the following order: petroleum & coal products; electrical equipment; transportation equipment; plastics & rubber products; food, beverage & tobacco products; textile, apparel, leather & footwear; nonmetallic mineral products; chemical & pharmaceutical products; furniture & related products; printing & related support activities; cement; fabricated metal products; and paper products.

The primary metal subsector recorded decline in the review period.

The production level index for the manufacturing index also fell to 57.5 percent in February as against 64 percent in January. The index indicated a slower growth in the current month, when compared to its level in the preceding month. Nine of the 14 manufacturing subsectors recorded increased production level, 3 remained unchanged while 2 recorded decline.

 At 56.9 points, the new orders index also fell by over 4 percent compared to the 61 percent level in January. Twelve subsectors reported growth, 1 remained unchanged, while 1 contracted in the review month

According to the report, The employment level index for February 2019 stood at 56.3 points, about the same as January, indicating growth in employment level for the twenty-second consecutive month. Of the 14 subsectors, 8 reported increased employment level, 5 reported unchanged employment level while 1 reported decreased employment in the review month