Reflecting the improving economy, the Purchasing Managers Index of both the manufacturing and non-manufacturing sectors for the month of June showed improvements over last month recording 52.9 and 54.2 index points respectively.
This was an improvement over the 52.5 index point recorded for the manufacturing PMI in May and 52.7 which was recorded for non-manufacturing in the month of May.
The improvement in the PMI which shows how well the business activity in an economy is performing shows expansion in both the manufacturing and non-manufacturing sectors for the third consecutive month.
In the PMI Survey Report for June 2017 released by the Central Bank of Nigeria (CBN) yesterday, 12 of the 16 subsectors of the manufacturing sectors reported growth.
Non-metallic mineral products; cement; chemical and pharmaceutical products and printing and related support activities recorded declines, computer and electronic products; paper products; plastics and rubber products; primary metal; transportation equipment; petroleum and coal products; appliances & components; textile, apparel, leather and footwear; furniture and related products; electrical equipment; food, beverage and tobacco products and fabricated metal products all recorded expansion.
The production level index for manufacturing sector grew for the fourth consecutive month in June 2017.
The index at 58.2 points indicated an increase in production but at a slower rate, when compared to the level attained in the previous month.
Fourteen manufacturing sub-sectors recorded increase in production level in the month of June.
At 51.0 points, new orders index grew for the third consecutive month, with only eight sub-sectors reporting growth in new orders. Meanwhile, employment level index in June 2017 stood at 51.1 points, indicating growth in employment level for the second consecutive month.
Of the 16 sub-sectors, 10, computer & electronic products; plastics & rubber products; transportation equipment; appliances & components; paper products; petroleum & coal products; primary metal; fabricated metal products; textile, apparel, leather & footwear and food, beverage & tobacco products recorded growth in employment.
The composite PMI for the non-manufacturing sector grew to 54.2 in June 2017 indicating growth in non-manufacturing PMI for the second consecutive month.
Of the 18 non-manufacturing subsectors, 15 recorded growth.
The subsectors that recorded growth are utilities; water supply, sewage & waste management; finance & insurance; educational services; repair, maintenance/ washing of motor vehicles…; agriculture; health care & social assistance; information & communication; electricity, gas, steam & air conditioning supply; real estate, rental & leasing; wholesale trade; professional, scientific, & technical services; transportation & warehousing; accommodation & food services and arts, entertainment & recreation.
However, the public administration, management of companies and construction sub sectors recorded contraction in the non-manufacturing PMI in June 2017
The business activity index rose to 57.0 points in June 2017 for the third consecutive month.
The index grew at a faster rate, when compared to its level in the previous month with 13 of the 18 subsectors recording growth.
The employment level Index for the non-manufacturing sector stood at 53.4 points, indicating growth in employment for the second consecutive month, with 16 sub-sectors recording growth in employment level.
Only the accommodation & food services and management of companies recorded decline in employment in June 2017.
