Purchasing managers’ index expands for the 12th consecutive month to 56.7 points in March

The manufacturing purchasing managers’ index (PMI), an indicator of the economic health of the manufacturing sector, surged to 56.7 index points in March 2018 indicating expansion in the manufacturing sector for the 12th consecutive month, a Central Bank of Nigeria (CBN) PMI report for the same month released at the weekend has shown.

The index report is a familiar data released at the start of the calendar month in developed markets such as the ISM’s in the US. It is based upon the responses of manufacturers to set questions on core variables in their businesses.

The CBN disclosed that the index grew at a faster rate, when compared to the index in the previous month, pointing out that of the 14 subsectors surveyed, 11 reported growth in the review month in the following order: electrical equipment; cement; petroleum & coal products; food, beverage & tobacco products; chemical & pharmaceutical products; fabricated metal products; paper products; transportation equipment; plastics & rubber products; textile, apparel, leather and footwear and primary metal.

The CBN noted that the remaining three subsectors contracted in the following order: non-metallic mineral products; furniture & related products and printing & related support activities.

The nation’s chief lender also said the production level index for the manufacturing sector grew for the thirteenth consecutive month in March 2018 to 59.1 points.

It said the index indicated a faster growth in the current month, when compared to its level in the preceding month.

Seven of the 14 manufacturing subsectors recorded increase in production level, 3 remained unchanged, while the remaining four recorded declines in production level during the review month.

In the same report, the apex bank disclosed that the composite PMI for the nonmanufacturing sector stood at 57.2 points in March 2018, indicating expansion in the non-manufacturing PMI for the 11th consecutive month.

It said 14 of the 16 subsectors recorded growth in the following order: public administration; utilities; finance & insurance; management of companies; agriculture; electricity, gas, steam & air conditioning supply; professional, scientific, & technical services; water supply, sewage & waste management; educational services; wholesale/ retail trade; information & communication; real estate rental & leasing; health care & social assistance; accommodation & food services.

The CBN said the transportation & warehousing, and construction subsectors recorded contraction in the review period. The apex bank indicated that at 59.1 points, the production level index for the manufacturing sector grew for the thirteenth consecutive month in March 2018.

The index indicated a faster growth in the current month when compared to its level in the preceding month.

Seven of the 14 manufacturing subsectors recorded increase in production level, 3 remained unchanged, while the remaining 4 recorded declines in production level during the review month.

The new orders index was recorded at 56.1 points grew for the twelfth consecutive month to 56.1 points indicating increase in new orders in March 2018. Six subsectors reported growth, 5 remained unchanged while 3 contracted in the review month.

The manufacturing supplier delivery time index stood at 56.6 points in March 2018, indicating faster supplier delivery time for the tenth consecutive month.

Ten subsectors recorded improved suppliers’ delivery time, 1 remained unchanged while 3 subsectors recorded delayed delivery time.