The Central Bank of Nigeria (CBN) has said its manufacturing Index has dropped by 0.4 index points to 57.4 index points in June
The CBN had reported 57.8 index points reported in May.
According to the apex bank “Purchasing Managers’ Index (PMI) Survey”, there has been expansion in the manufacturing sector for the 27th consecutive month.
The CBN governor presenting his policy thrust for the next 5 years on Monday said, “Our CBN purchasing manufacturers index has risen for 26 consecutive months since March 2017, indicating continuous growth in the manufacturing sector, as a result of measures implemented by the CBN which has improved access to raw materials and finance for manufacturing firms.”
However, 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.
For the Manufacturing PMI the CBN uses, production level, new order, supplier delivery time, employment level and raw material Inventories to measure manufacturing sector performance on monthly basis.
The report that was released on Tuesday said, “The Manufacturing PMI in the month of June stood at 57.4 index points, indicating expansion in the manufacturing sector for the 27th consecutive month. The index grew at a slower rate when compared to the index in the previous month.
On production level, the report said, “At 59.3 points, the production level index for the manufacturing sector grew for the 28th consecutive month in June 2019. The index indicated a faster growth in the current month, when compared to its level in the month of May 2019.”
The report stated that new order moved to 55.9 points for the 27 consecutive month, indicating increase in new orders in June 2019.
The PMI report on supplier delivery time stated that, “The manufacturing supplier delivery time index stood at 58.7 points in June 2019, indicating faster supplier delivery time.
“The index has recorded growth for 25 consecutive months. 11 of the 14 subsectors recorded improved suppliers’ delivery time, while one remained unchanged and two recorded decline in the review period.
“The employment level index for June 2019 stood at 57.5 points, indicating growth in employment level for the 26th consecutive month.
“Of the 14 subsectors, 10 reported increased employment level, two reported unchanged employment level while two reported decreased employment in the review month
The report added that “The Manufacturing sector inventories index grew for the 27th consecutive month in June 2019.
“At 55.0 points, the index grew at a slower rate when compared to its level in May 2019. 10 of the 14 subsectors recorded growth, two remain unchanged, while two sectors reported declined raw material inventories in the review month,” the report on Raw material Inventories added
Source: Nigerian NewsDirect