By Elizabeth Adegbesan

Central Bank of Nigeria, CBN, yesterday, released its Purchasing Managers Index (PMI) Report for May, 2018 which indicated that though economic expansion persisted for the fourteenth month in manufacturing and non-manufacturing sectors, the rate of expansion has slowed down.

Emefiele CBN Governor

The report said that the Manufacturing PMI expanded by 56.5 percent in May, though slowed down by -0.4 basis point (bpt) from 56.9 percent recorded in April, while the Non-manufacturing  PMI grew at a slower rate to 57.3 percent or -0.2 bpt in May from 57.5 percent in April.

According to CBN, out of the 32 sub-sectors surveyed in the period, 24 recorded growth when compared to 27 sub-sectors that recorded growth out of the 33 sub-sectors surveyed in April. The Manufacturing and Non-Manufacturing PMI Report on businesses is based on survey responses, indicating the changes in the level of business activities in the current month compared with the preceding month.

A composite PMI above 50 points indicates that the manufacturing or non-manufacturing sector of the economy is generally expanding, 50 points indicates no change and below 50 points indicates that it is generally contracting.

The report stated: “The Manufacturing PMI in the month of May stood at 56.5 index points, indicating expansion in the manufacturing sector for the fourteenth consecutive month. The index, however, grew at a slower rate when compared to the index in the previous month.

“Of the 14 sub-sectors surveyed, 10 reported growth in the review month in the following order: petroleum & coal products; paper products; plastics & rubber products; electrical equipment; food, beverage & tobacco products; cement; chemical & pharmaceutical products; primary metal; printing & related support activities; and textile, apparel, leather & footwear. The transportation equipment; fabricated metal products; non-metallic mineral products; and furniture & related products sub-sectors declined in the review month.

On non-manufacturing sector the report said: “The composite PMI for the non-manufacturing sector stood at 57.3 points in May 2018, indicating expansion in the Non-manufacturing PMI for the thirteenth consecutive month. The index grew at a slower rate when compared to that in April 2018.”