Economic activities expand faster in July – CBN’s PMI report
By Babajide Komolafe
LAGOS — The Central Bank of Nigeria, CBN, Tuesday, released its Purchasing Managers Index, PMI, report for July, which indicated that economic activities expanded faster during the month, confirming that the nation’s recovery from economic recession is on course.
The CBN stated that the manufacturing PMI rose to 54.1 per cent in July, up from 52.9 in June, while the non-manufacturing PMI also rose to 54.4 per cent from 54.2 per cent in June.
The report showed that 27 subsectors of the 34 subsectors surveyed recorded growth during the month.
In the manufacturing sector 11 subsectors out of the 16 subsectors surveyed recorded growth. In the non manufacturing sector, 16 subsectors out of the 18 subsectors surveyed recorded growth.
The Manufacturing and Non-Manufacturing PMI Report on businesses is based on data compiled from purchasing and supply executives’ responses.
Survey responses indicate whether there is change or no change in the level of business activities in the current month compared with the previous month.
A composite PMI above 50 points indicates that the manufacturing/non-manufacturing economy is generally expanding.
The report stated: “The Manufacturing PMI stood at 54.1 index points in July 2017, indicating expansion in the manufacturing sector for the fourth consecutive month. Eleven of the 16 subsectors reported growth in the review month in the following order: appliances & components; computer & electronic products; cement; primary metal; chemical & pharmaceutical products; food, beverage & tobacco products; textile, apparel, leather & footwear; printing & related support activities; paper products; electrical equipment and transportation equipment. The remaining five subsectors declined in the order: petroleum & coal products; fabricated metal products; furniture & related products; non-metallic mineral products and plastics & rubber products.
“The production level index for the manufacturing sector grew for the fifth consecutive month in July 2017. The index at 59.3 points indicated an expansion in production at a faster rate, when compared to the level recorded in the previous month. Fourteen of the sixteen manufacturing subsectors recorded expansion in production level during the review month.
“Manufacturing employment level index in July 2017 stood at 51.8 points, indicating growth in employment level for the third consecutive month. Of the sixteen subsectors, eight recorded growth, three subsectors remained unchanged while the remaining five subsectors recorded decline in employment level
“The composite PMI for the non-manufacturing sector grew to 54.4 points in July 2017, indicating growth in Non-manufacturing PMI for the third consecutive month. Of the eighteen non-manufacturing subsectors, sixteen recorded growth in the following order: agriculture; public administration; utilities; information & communication; finance & insurance; transportation & warehousing; educational services; management of companies; repair, maintenance/ washing of motor vehicles; health care & social assistance; electricity, gas, steam & air conditioning supply; real estate, rental & leasing; wholesale trade; professional, scientific, & technical services; water supply, sewage & waste management and accommodation & food services. The construction and arts, entertainment & recreation sub sectors recorded contraction in the Non-manufacturing PMI.
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