CBN’s PMI indicates further economic expansion in November

The Central Bank of Nigeria yesterday released its Purchasing Managers Index (PMI) report for November 2017 which indicated further increases in economic expansion during the month. According to the report the manufacturing sector PMI rose to 55.9 percent in November from 55 percent in the preceding month, while the non-manufacturing PMI also rose to 57.6 percent from 55.3 percent in October. The report also revealed that 27 out of the 34 subsectors recorded expansion in November, up from 26 subsectors that recorded expansion in October. 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/non-manufacturing economy is generally expanding, 50 points indicates no change and below 50 points indicates that it is generally contracting. The November PMI report stated: “The Manufacturing PMI in the month of November stood at 55.9 index points indicating expansion in the manufacturing sector for the eight consecutive months. Twelve of the 16 subsectors reported growth in the review month in the following order: petroleum & coal products; printing & related support activities; computer & electronic products; textile, apparel, leather and footwear; plastics & rubber products; food, beverage & tobacco products; non-metallic mineral products; chemical & pharmaceutical products; furniture & related products; paper products; cement and primary metal. The electrical equipment sector remained unchanged, while the appliances & components; fabricated metal products and transportation equipment sectors contracted in the review month. “The composite PMI for the non-manufacturing sector stood at 57.6 points in November 2017, indicating growth in the Non-manufacturing PMI for the seventh consecutive month.”