The Central Bank of Nigeria (CBN) has reported that the nation’s Purchasing Manufacturing Index (PMI) in the month of August expanded at 57.1 index points, thereby sustaining the expansionary trend in the real for the 17th consecutive month.
The apex bank’s Statistics Department conducted the August 2018 PMI survey from between August 9th and 17th this year.
According to the PMI report, the respondents covered purchasing and supply executives of manufacturing and non-manufacturing organizations in all 36 states and the Federal Capital Territory (FCT)
The apex bank reported that when compared to the 56.8 index points of PMI in July, the PMI for August grew at a faster rate.
The CBN clarified: “Of the 14 sub-sectors surveyed, 13 reported growth in the review month in the following order: electrical equipment; nonmetallic mineral products; cement; furniture & related products; plastics & rubber products; textile, apparel, leather & footwear; petroleum & coal products; chemical & pharmaceutical products; paper products; fabricated metal products; printing & related support activities; food, beverage & tobacco products and primary metal.
“The transportation equipment sub-sector dipped in the reviewed month”.
The Manufacturing PMI report on businesses is based on survey responses, reflecting changes in the level of business activities in the month in review compared with the preceding month.
For each indicator measured, the PMI report shows the diffusion index, which is computed as the percentage of responses with positive change plus half of the percentage of those reporting no change, except for supplier delivery time, of the responses.
Specifically, the composite PMI for the manufacturing sector is computed as the weighted average of five diffusion indices, namely the production level, level of new orders, suppliers’ delivery time, employment level and raw materials inventory/work in progress, with assigned weights of 25 percent, 30 percent, 15 percent, 10 percent and 20 percent respectively.
