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CBN: Manufacturers record slower growth rate in Feb

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MANUFACTURERS continued to expand in output for the 24th consecutive month as February’s Manufacturing Purchasing Managers’ Index (PMI) stood at 57.1 index points, albeit at a slower rate.

Central Bank of Nigeria (CBN), said the Manufacturing Purchasing Managers’ Index (PMI) stood at 57.1 index points as at February, indicating an expansion in the manufacturing sector for 23 consecutive months.

However, the index grew at a slower rate when compared to 58.5 index points recorded in January, the Central Bank of Nigeria (CBN) latest PMI survey report has shown.

The Purchasing Managers’ Index (PMI) is an indicator of the economic health of the manufacturing sector. The PMI is based on five major indicators: new orders, inventory levels, production, supplier deliveries and the employment environment.

According to the report, 13 out of the 14 sub-sectors assessed reported growth in the month reviewed in petroleum and coal products, electrical equipment, transportation equipment; plastics and rubber products, food, beverage and tobacco products.

The other sectors the report said include textile, apparel, leather and footwear, nonmetallic mineral products, chemical and pharmaceutical products, furniture and related products, printing and related support activities, cement, fabricated metal products, and paper products.

The report, however, said the primary metal subsector declined in the period reviewed.

It said at 57.5 points, the production level index for the manufacturing sector grew for the 24 consecutive month in February 2019.

The report said the index indicated a slower growth in the month under review when compared to its level in the preceding month.

It said nine of the 14 manufacturing subsectors recorded increased production level, three remained unchanged while two recorded decline.

The report further said that the manufacturing supplier delivery time index stood at 58.2 points in the period under review, indicating slower supplier delivery time.

According to the report, the index has recorded growth for 21 consecutive months.

It said all 14 subsectors recorded improved suppliers’ delivery time in the review period.

The report also said the employment level index for February stood at 56.3 points, indicating growth in employment level for the 22 consecutive months.

Out of the 14 subsectors, the report said eight reported increased employment level, five reported unchanged employment level, while one reported decreased employment in the period under review.

The PMI is an indicator of business activity in both the manufacturing and services sectors.

It is a survey-based measure that seeks to know about changes in some key business variables from the previous month.

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