CBN’s PMI report shows decline in production level


The Central Bank of Nigeria (CBN) Purchasing Managers Index (PMI) report for February has shown production level index on the decline to 58.9 points as against 59.6 points reported in January 2020.

The latest report by CBN showed that composite PMI manufacturing sector closed February at 58.3 points from 59.2 points, to signal growth for the 35th consecutive month in February 2020.

Indices used to survey the manufacturing PMI Report of the CBN include production level, new orders, supplier delivery time, employment level and raw materials inventories that all gaining at a slower rate in the month under review.

According to the survey by CBN, “The Manufacturing PMI in the month of February stood at 58.3 index points, indicating expansion in the manufacturing sector for the 35 th consecutive month.

“The index grew at a slower rate when compared to the index in January.

“Of the 14 surveyed subsectors, 12 reported growth (above 50per cent threshold) in the review month in the following order: transportation equipment; petroleum & coal products; Nonmetallic mineral products; Paper products; cement; textile, apparel, leather & footwear; Furniture & related products; food, beverage & tobacco products; plastics & rubber products; Fabricated metal products; chemical & pharmaceutical products; plastic and rubber products and Electrical equipment.

“The Primary metal and Printing & related support activities subsectors recorded declines.”

On production level, the survey said, “At 58.9 points, the production level index for the manufacturing sector grew for the 36thconsecutive month in February 2020.

“The index however indicated slower growth in the current month, when compared to its level in January 2020. 10 of the 14 manufacturing subsectors recorded an increased production level, three remained unchanged while one recorded a decline.

“At 59.1 points, the new orders index grew for the 35th consecutive month, indicating increases in new orders in February 2020. The index grew at a slower rate when compared to its level in January 2020. 11 subsectors reported growth, while the remaining three recorded declines in the review month.

“The manufacturing supplier delivery time index stood at 58.4 points in February 2020, indicating faster supplier delivery time. The index has recorded growth for 33 consecutive months. 10 of the 14 subsectors recorded improved suppliers’ delivery time, while 4 subsectors reported no change in delivery time in February 2020

“The employment level index for February 2020 stood at 56.4 points, indicating growth in employment level for the 34th consecutive month. Of the 14 subsectors, nine reported increased employment level, three subsectors remain unchanged, while the electrical equipment and printing & related support services subsector recorded lower employment level in the review month.

“The manufacturing sector inventories index grew for the 35th consecutive month in February 2020. At 58.5 points, the index grew at a slower rate when compared to its level in January 2020. Eight of the 14 subsectors recorded growth, five subsectors reported unchanged inventories, while the cement subsector reported lower raw material inventories in the review month,” the report added.

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