The Central Bank of Nigeria (CBN) has said its Manufacturing Purchasing Manager Index (PMI) close in may 2017 at 52.5 index points from 51.1 basis points in April, indicating expansion in the manufacturing sector for the second consecutive month.
This is coming on the heels of CBN’s improved sale of foreign exchange to retail (for invisibles) and to importers. This has resulted into business confidence and improved liquidity in the nation’s economy.
The report released by CBN on Thursday said production level index for manufacturing sector expanded for the third consecutive month in May 2017 to 58.7 basis points from 58,5 basis points recorded in April.
According to the report, “the production level index closed at 58.7 points indicated an increase in production at a faster rate, when compared to the 58.5 points in the previous month.”
The report by CBN said new orders index for the month of May stood at 50.5 points, indicating a faster growth in new orders for the second consecutive month.
“Eight sub-sectors reported growth in new orders in the following order: appliances & components; plastics & rubber products; textile, apparel, leather & footwear; paper products; chemical & pharmaceutical products; food, beverage & tobacco products; petroleum & coal products and primary metal.
“The cement and electrical equipment subsectors remained unchanged, while the printing & related support activities; nonmetallic mineral products; computer & electronic products; transportation equipment; fabricated metal products and furniture & related products sub-sectors recorded declines,” the report by CBN explained.
The report noted that supplier delivery time index for May closed at 49.9 index points for the second consecutive month, though at a slower rate when compared to the previous month that closed at 47.5 index points.
For employment level Index in May, it moved from 46.6 points in April to 50.7 points in the month under review to indicate growth in employment level.
The report said, “Employment level index in May 2017 stood at 50.7 points, indicating growth in employment level after twenty-six consecutive month of contraction in employment.
“Of the sixteen sub-sectors, seven recorded growth in employment in the following order: primary metal; plastics & rubber products; petroleum & coal products; paper products; appliances & components; cement and fabricated metal products.
“The electrical equipment and textile, apparel, leather & footwear remained unchanged, while the remaining seven sub sectors recorded contraction in employment in the following order: computer & electronic products; transportation equipment; chemical & pharmaceutical products; nonmetallic mineral products; food, beverage & tobacco products; printing & related support activities and furniture & related products.”
The report added that business activity index rose to 56.2 points in May 2017 from 53.3 points, second consecutive month increase.
index grew at a faster rate, when compared to its level in the previous month.