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Nigeria’s Manufacturing Index expands first time in 11 months

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Nigeria’s Manufacturing Index expands first time in 11 months

The Manufacturing Purchasing Managers’ Index (PMI) stood at 52 index points in December 2016, indicating expansion in the manufacturing sector during the review period. The index had recorded decline in the preceding 11 months.

The report showed that production level, new orders, and raw material inventories expanded from contraction; employment level declined slower; but supplier delivery time worsened from improving December 2016.

The report posted on the Central Bank of Nigeria’s (CBN) website showed that eight of the 16 sub-sectors surveyed recorded expansion in the review month in the following order: cement; food, beverage & tobacco products; textile, apparel, leather & footwear; plastics & rubber products; paper products; appliances & components; chemical & pharmaceutical products; and furniture & related products.

The fabricated metal products sub-sector remained unchanged, while the remaining seven sub-sectors declined in the order: computer and electronic products; electrical equipment; primary metal; transportation equipment; petroleum and coal products; printing and related support activities; and non-metallic mineral products.

Also, at 57.6 index points, the production level index for manufacturing sector indicated the sector expanded in the review period, compared to the decline recorded in the preceding eleven months. Five manufacturing sub-sectors recorded growth in production level during the review month in the following order: cement; food, beverage and tobacco products; electrical equipment; plastics and rubber products; and textile, apparel, leather and footwear.

Furthermore, the appliances and components sub-sector remained unchanged, while the remaining 10 sub-sectors declined in the review period in the order: primary metal; petroleum and coal products; computer and electronic products; transportation equipment; furniture and related products; fabricated metal products; non-metallic mineral products; paper products; chemical and pharmaceutical products; and printing and related support activities.

At 51.8 points, the new orders index showed expansion in new orders after eleven months of contraction. It stood at 45.1 in November 2016. The five sub-sectors that recorded expansion in new orders were: cement; food, beverage & tobacco products; textile, apparel, leather and footwear; paper products; and fabricated metal products. The plastics and rubber products sub-sector remained unchanged, while the remaining ten sub-sectors declined in the order: primary metal; electrical equipment; transportation equipment; appliances & components; petroleum & coal products; printing & related support activities; computer & electronic products; nonmetallic mineral products; furniture & related products; and chemical & pharmaceutical products.

In addition, the report showed that at 47.9 index points, the supplier delivery time for manufacturing sub-sectors contracted in the month of December 2016, after nine consecutive periods of expansion.

Nine sub-sectors recorded worsening suppliers’ delivery time in the following order: transportation equipment; food, beverage & tobacco products; cement; textile, apparel, leather & footwear; paper products; printing & related support activities; chemical & pharmaceutical products; plastics & rubber products; and non-metallic mineral products. The computer & electronic products and electrical equipment sub-sectors remained unchanged, while the appliances & components; primary metal; furniture & related products; petroleum & coal products; and fabricated metal products sub- sectors recorded improving delivery time in December.

“Employment level index in the month of December 2016 stood at 48.6 points, indicating declines in employment level for the 22 consecutive months. However, the index shows a slowing contraction in manufacturing employment when compared with the level in the preceding month.

“Of the 16 sub-sectors, nine recorded contraction in employment in the following order: computer & electronic products; electrical equipment; appliances & components; printing & related support activities; furniture & related products; chemical & pharmaceutical products; primary metal; fabricated metal products; and non-metallic mineral products,” it added.

By on January 6, 2017

Source: ThisDay