Despite Apapa gridlock, manufacturers’ purchasing level expands

Notwithstanding the current dilapidated state of access roads to the nation’s ports in Lagos State and the resultant traffic gridlock, especially last month, the manufacturing Purchasing Managers’ Index (PMI) in the month of December stood at 59.3 index points indicating expansion, alongside rising production level.

The expansion in PMI in the manufacturing sector has remained steady for the ninth consecutive months.

Indeed, 15 of the 16 subsectors reported growth in the review month in the following order petroleum & coal products; textile, apparel, leather and footwear; cement; transportation equipment; paper products; food, beverage & tobacco products; furniture & related products; plastics & rubber products; nonmetallic mineral products; printing & related support activities; appliances and components; chemical & pharmaceutical products; fabricated metal products; primary metal and electrical equipment.

At 63.2 points, the production level index for the manufacturing sector grew for the tenth consecutive month in December 2017. The index indicated an increase in production in the current month, when compared to its level in the preceding month.

Eleven of the 16 manufacturing subsectors recorded increase in production level, 3 remained unchanged, while the remaining 2 recorded declines in production level during the review month.

At 60.0 points, the new orders index grew for the nine consecutive month, indicating increase in new orders in December 2017. Thirteen subsectors reported growth, 2 remained unchanged while 1 contracted in the review month.

The manufacturing supplier delivery time index stood at 57.4 points in December 2017, indicating faster supplier delivery time for the seventh consecutive month. Eleven subsectors recorded improved suppliers’ delivery time, 1 remained unchanged while 4 subsectors recorded delayed delivery time.

Also, the Manufacturing sector inventories index grew for the ninth consecutive months in December 2017. At 61.1 points, the index grew at a faster rate when compared to its level in the previous months.

Eleven of the 16 subsectors recorded growth, 3 remained unchanged while two subsectors recorded decline in raw material inventories.

Despite rising unemployment level in the country, the employment level index in December 2017 stood at 53.9 points, indicating growth in employment level for the eighth consecutive month. Of the 16 subsectors, 9 subsectors increased their employment level, 3 remained unchanged while 4 subsectors reduced their employment level in the review month.

The composite PMI for the non-manufacturing sector stood at 62.1 points in December 2017, indicating expansion in the Non-manufacturing PMI for the eighth consecutive month.

Fifteen of the 18 non-manufacturing subsectors recorded growth.
in the following order: arts, entertainment & recreation; agriculture; transportation & warehousing; utilities; water supply, sewage & waste management; finance & insurance; health care & social assistance; real estate, rental & leasing; wholesale trade; accommodation & food services; electricity, gas, steam & air conditioning supply; educational services; construction; information & communication and professional, scientific, & technical services.

The management of companies remained unchanged, while the public administration and repair, maintenance/washing of motor vehicles subsectors recorded contraction in the review period.