PMI records slow growth in February

The manufacturing purchasing Managers index (PMI) stood at 58.3 index points in February, indicating expansion in the manufacturing sector for the 35th consecutive month.

However, the index grew at a slower rate when compared to the index in January.

The Central Bank of Nigeria (CBN) disclosed this in its PMI report for February, 2020, posted on its website.

According to the report, of the 14 surveyed sub-sectors, 12 reported growth (above 50% threshold) in the review month in the following order: transportation equipment; petroleum and coal products; non-metallic mineral products and paper products.

Others include cement; textile, apparel, leather and footwear; furniture and related products; food, beverage and tobacco products; plastics and rubber products; fabricated metal products; chemical and pharmaceutical products; plastic and rubber products and Electrical equipment.

But, the primary metal, printing and related support activities sub-sectors recorded declines.

Also, the report showed that at 58.9 points, the production level index for the manufacturing sector grew for the 36th consecutive month in February 2020. The index however indicated slower growth in the current month, when compared to its level in January 2020.

In all, 10 of the 14 manufacturing sub-sectors recorded increased production level, remained unchanged while one recorded a decline.

“At 59.1 points, the new orders index grew for the thirty-fifth consecutive month, indicating increases in new orders in February 2020.

“The index grew at a slower rate, when compared to its level in January 2020. Eleven subsectors reported growth, while the remaining three recorded declines in the review month,” it added.

According to the report, the manufacturing supplier delivery time index stood at 58.4 points in February 2020, indicating faster supplier delivery time.

The index has recorded growth for 33 consecutive months.

“Ten of the 14 sub-sectors recorded improved suppliers’ delivery time, while four sub-sectors reported no change in delivery time in February 2020.

“The employment level index for February 2020 stood at 56.4 points, indicating growth in employment level for the 34 consecutive month.

“Of the 14 sub-sectors, nine reported increased employment level, three sub-sectors remain unchanged, while the electrical equipment and printing and related support services sub-sector recorded lower employment level in the review month.

“The manufacturing sector inventories index grew for the thirty-fifth consecutive month in February 2020.

“At 58.5 points, the index grew at a slower rate when compared to its level in January 2020,” the report stated.