As inflation continue to trickle downwards, business activities has maintained an uptick as the Purchasing Managers Index (PMI) for August improved according to the PMI Report released by the Central Bank of Nigeria (CBN).
Inflation, which is the rate at which the prices of goods and services rise have been trending downwards for the third consecutive month to 11.08 per cent in July from 11.4 per cent in May this year.
The manufacturing PMI for August stood at 57.9 index points, indicating expansion in the manufacturing sector for the 29th consecutive month, as the index grew at a faster rate when compared to 57.6 index points in July. Of the 14 sub sectors surveyed, 13 reported growth in August.
The cement; petroleum & coal products; food, beverage & tobacco products; transportation equipment; printing & related support activities; chemical & pharmaceutical products; furniture & related ; products; fabricated metal products; nonmetallic mineral products; electrical equipment; textile, apparel, leather & footwear; plastics & rubber products; and primary metal recorded growth while the paper products subsector recorded decline.
At 58.7 points, the production level index for the manufacturing sector grew for the 13th consecutive month in August 2019. The index indicated a slower growth in the current month, when compared to its level in July 2019, when it was 58.9 points. Of the 14 manufacturing subsectors, eight recorded increased production level, three remained unchanged, while three recorded decline.
The new orders index grew for the 29 consecutive month at 57.1 points, indicating an increase in new orders in August 2019. The index also grew at a slower rate, when compared to its level of 57.2 points in July 2019. Nine sub sectors reported growth, four remained unchanged, while one contracted in the review month.
Employment level index in the manufacturing sector for July 2019 stood at 57.1 points, indicating a growth in employment level for the 27th consecutive month albeit slower than July index. Of the 14 subsectors, 10 reported increased employment level, two reported unchanged employment level while two reported decreased employment.
The composite PMI for the nonmanufacturing sector stood at 58.8 points in August 2019, indicating expansion in the Non-manufacturing PMI for the 28th consecutive month. The index grew at a faster rate when compared to its level of 58.7 points in July 2019.
Fourteen of the 17 surveyed subsectors recorded growth in the following order: repair, maintenance/washing of motor vehicles; transportation & warehousing; information & communication; wholesale/retail trade; electricity, gas, steam & air conditioning supply; arts, entertainment & recreation; real estate rental & leasing; accommodation & food services; finance & insurance; health care & social assistance; professional, scientific, & technical services; construction; agriculture; and educational services. The management of companies; utilities; and water supply, sewage & waste management subsectors contacted.
t 58.2 points, the business activity index grew for the 29th consecutive month, indicating expansion in non manufacturing business activity in August 2019. Fourteen subsectors recorded growth in business activity, two remained unchanged, while one declined.
The employment level Index for the nonmanufacturing sector stood at 57.8 points, indicating a growth in employment for the 28th consecutive month. Fourteen subsectors recorded growth in employment level, 1 remained unchanged, while 2 sub sectors declined in the review period.