The Manufacturing Purchasing Managers’ Index (PMI) stood at 44.6 index points in February 2017, indicating decline in the manufacturing sector for two consecutive months after an incidence of expansion in December 2016.
The PMI is an indicator of the economic health of the manufacturing sector. The PMI is based on five major indicators: new orders, inventory levels, production, supplier deliveries and the employment environment.
According to the PMI report for February 2017 released by the Central Bank of Nigeria (CBN) yesterday, 14 of the 16 sub-sectors reported decline in the review month in the following order: transportation equipment; paper products; electrical equipment; printing & related support activities; fabricated metal products; chemical & pharmaceutical products; furniture & related products; cement; plastics & rubber products; petroleum & coal products; textile, apparel, leather & footwear; computer & electronic products; nonmetallic mineral products and primary metal.
But the appliances & components and food, beverage & tobacco products sub-sectors reported expansion in the review period.
Similarly, the production level index for manufacturing sector contracted in February 2017. The index at 45.2 points indicated a decline in production level when compared to the 51.3 points in the previous month.
Also, 12 manufacturing sub-sectors recorded declines in production level during the review month in the following order: electrical equipment; paper products; transportation equipment; chemical & pharmaceutical products; plastics & rubber products; furniture & related products; fabricated metal products; printing & related support activities; computer & electronic products; primary metal; textile, apparel, leather & footwear and cement. The petroleum & coal products sub-sector remained unchanged, while the appliances & components; food, beverage & tobacco products and nonmetallic mineral products recorded growth in production.