Breaking News
    Translate

    CBN reports a depressed manufacturing sector in 2015

    By Emeka Anaeto, Economy Editor

    LAGOS— Data from the Central Bank of Nigeria, CBN, has indicated sluggish growth amidst adverse operating environment across manufacturing sector at year end 2015.

    CBN Governor, Mr Godwin Emefiele
    CBN Governor, Mr Godwin Emefiele

    But the apex bank’s report shows non-manufacturing sector at steady growth during the same period.

    CBN Manufacturing PMI Index for the month of December 2015 shows production level and new orders are growing at a slower rate, raw material inventories (unused raw materials) increasing at a faster rate, supplier delivery time declining at a faster rate, and employment level decreasing at a slower rate.

    The Statistics Department of CBN conducts on monthly basis, the survey of purchasing and supply executives of manufacturing and non-manufacturing organizations in 13 states in Nigeria, two states in each of the six geo-political zones, and the Federal Capital Territory, FCT. The survey result is used to compute the monthly Purchasing Managers’ Index (PMI).

    According to the survey results, Manufacturing PMI stood at 51.2 per cent, same as in the preceding month indicating a little above average level of activities.

    Of the 16 manufacturing products groups, eight reported expansion in the review month in the following order: cement products; petroleum & coal products; food, beverage & tobacco products; textile, apparel, leather and footwear products; chemical & pharmaceutical products; plastics & rubber products; furniture & related products and primary metal products.

    The remaining eight sub-sectors, however, reported contraction in the following order: appliances and components products; non-metallic mineral products; transportation equipment; fabricated metal products; paper products; electrical equipments; computer & electronic products; and printing & related support activities.

    At 55.4 percent, the production level index for manufacturing sector grew for the fourth consecutive month. However, the index grew at a slower rate when compared with the level in November, 2015.

    Of the 16 manufacturing sub-sectors, 10 reported growth in production during the review month in the following order: cement products; petroleum & coal products; textile, apparel, leather and footwear products; food, beverage & tobacco products; furniture & related products; chemical & pharmaceutical products; primary metal products; plastics & rubber products; printing & related support activities; and transportation equipment.

    The computer & electronic products sub-sector reported no change while the remaining five reported contractions in production during the review month in the following order: non-metallic mineral products; appliances and components; paper products; fabricated metal products and electrical equipment.

    New Orders Index, NOI, registered 52.7 percent in December 2015. The index dropped by 0.2 points below the level achieved in the previous month, indicating slower growth.

    The nine sub-sectors that reported increase in new orders were: cement; chemical & pharmaceutical products; textile, apparel, leather and footwear products; food, beverage & tobacco products; primary metal products; furniture & related products; petroleum & coal products; plastics & rubber products; and printing & related support activities. The remaining seven sub-sectors reported declines in new order in the following order: appliances and components products; non-metallic mineral products; electrical equipment; transportation equipment; paper products; fabricated metal products; and computer & electronic products.

    At 45.2 percent, the Supplier Delivery Time Index, SDTI, for manufacturing sub-sectors declined for the eleventh consecutive month. The index declined at a faster rate when compared with the level in November, 2015.

    Thirteen sub-sectors reported a decline in suppliers’ delivery time in the following order: computer & electronic products; cement products; textile, apparel, leather and footwear products; primary metal products; transportation equipment; non-metallic mineral products; petroleum & coal products; chemical & pharmaceutical products; printing & related support activities; food, beverage & tobacco products; furniture & related products; electrical equipment; and fabricated metal products. The remaining three sub-sectors reported growth in delivery time in December in the order of: appliances and components; plastics & rubber products; and paper products.

    Employment level index in the month of December stood at 47.5 percent, indicating a decline in employment in the manufacturing sector for the tenth consecutive month. The index declined at a slower rate when compared with its level in November, 2015.

    Of the sixteen sub-sectors, eleven recorded decline in the following order: transportation equipment; fabricated metal products; printing & related support activities; chemical & pharmaceutical products; appliances and components; paper products; electrical equipment; furniture & related products; plastics & rubber products; textile, apparel, leather and footwear and food, beverage & tobacco products.

    The remaining five sub-sectors reported growth in the following order: non-metallic mineral products; petroleum & coal products; computer & electronic products; primary metal and cement.

    The Raw Materials Inventory Index, RMII, stood at 52.7 percent in the month of December, indicating an increase in raw materials inventory in the manufacturing sector for the third consecutive month. Nine of the sixteen sub-sectors reported higher raw materials inventories in the following order: electrical equipment; cement; chemical & pharmaceutical products; plastics & rubber products; paper products; transportation equipment; furniture & related products; textile, apparel, leather and footwear and food, beverage & tobacco products. The fabricated metal products and primary metal sub-sectors reported no change. The remaining five subsectors reported lower inventories in the following order: petroleum & coal products; non-metallic mineral products; appliances and components; printing & related support activities and computer & electronic products.

    In the non-manufacturing sub-sectors the report turns largely positive as business activity and new orders are shown growing at faster rate, level of employment unchanged and raw materials inventories growing from contraction.

    The composite PMI for the non-manufacturing sector grew after one month of contraction. The index rose to 53.4 points from the 49.6 points registered in the preceding month.

    Of the eighteen non-manufacturing sub-sectors, twelve grew in the month of December in the following order: agriculture; health care & social assistance; finance & insurance; public administration; transportation & warehousing; wholesale trade; retail trade; accommodation & food services; information & communication; arts, entertainment & recreation; educational services and electricity, gas, steam & air conditioning supply.

    The remaining six sub-sectors reported decline in the following order: management of companies; construction; water supply, sewage & waste management; professional, scientific, & technical services; utilities and real estate, rental & leasing.

    Business Activity Index, BAI, of the non-manufacturing sub-sectors grew for the ninth consecutive month, as the index stood at 55.9 points in December, 2015. The index grew at a faster rate, compared to its level in the preceding month.

    Of the eighteen non-manufacturing sub-sectors thirteen of them reported growth in December in the following order: agriculture; health care & social assistance; information & communication; finance & insurance; management of companies; retail trade; accommodation & food services; transportation & warehousing; arts, entertainment & recreation; electricity, gas, steam and air conditioning supply; wholesale trade; construction and real estate, rental & leasing.

    The agricultural and wholesale trade sub-sectors have been growing for eighteen consecutive months. Water supply, sewage & waste management sub-sector reported no change. The remaining four sub-sectors contracted in the review month in the order: utilities; educational services; public administration and professional, scientific, & technical services.

    At 56.4 percent, new orders in non-manufacturing sub-sectors grew at a faster rate in December 2015 for the eleventh consecutive month.

    Of the eighteen sub-sectors, eleven reported growth in the following order: finance & insurance; agriculture; health care & social assistance; wholesale trade; retail trade; transportation & warehousing; public administration; electricity, gas, steam and air conditioning supply; educational services; accommodation & food services and arts, entertainment & recreation.

    New orders on wholesale trade and transportation/warehousing have been growing consecutively for eighteen and ten months, respectively.

    Three sub-sectors, namely: information & communication; utilities and water supply, sewage & waste management reported no change. The remaining four sectors reported declines in the following order: management of companies; professional, scientific, & technical services; construction and real estate, rental & leasing.

    The employment level Index of non-manufacturing sub-sectors reported no change in the review month, as the index stood at 50.0 points, after declining for nine consecutive months. Eight sub-sectors reported growth in employment in the month of December in the order: public administration; agriculture; utilities; transportation & warehousing; health care & social assistance; accommodation & food services; retail trade and educational services.

    The remaining ten sub-sectors reported decline in employment in the order: management of companies; water supply, sewage & waste management; construction; information & communication; electricity, gas, steam and air conditioning supply; professional, scientific, & technical services; arts, entertainment & recreation; finance & insurance; real estate, rental & leasing and wholesale trade. Information & communication and professional, scientific & technical services sub-sectors recorded job losses for ten consecutive months.


    Disclaimer

    Comments expressed here do not reflect the opinions of vanguard newspapers or any employee thereof.