• World
  • Columnist
  • Commodities
  • WORLD BUSINESS & ECONOMY
  • Executive Knowledge Series
  • Finance
  • Manufacturing
  • Markets
  • Risk & Governance
  • Small Business
  • Technology, Media & Innovation
  • Comments
  • Business AM WebTV
  • Login

Businessamlive
  • FRONTPAGE
  • FINANCE
    • AllAsset ManagementAuditBankingBondBudgetCapital MarketsC&I LeasingCurrencyDealDebt marketForexFund RaisingFundingGovernmentHedge FundsInsuranceInvestmentInvestorInvestor ServicesMergers & AcquistionsMoney marketTreasury BillsMortgagePensionsPersonal financePonziQuantitative EasingshareTaxationTSAWealth Management
      Finance

      CBN says cryptocurrency ban in interest of Nigerians

      February 25, 2021

      Companies-in-Action

      Zenith Bank in strong operational performance as profit rises 10.4% to N230.56bn in FY20

      February 25, 2021

      Companies

      United Capital posts strong numbers as earnings rise 50% to N12.87bn in 2020

      February 23, 2021

      Finance

      CIBN revives mentorship initiative for bank workers

      February 20, 2021

  • MARKETS
  • ECONOMY
    • AllAfricaAgricAirportsAmericaAsiaAustraliaBreakthroughDealEuropeForeign InvestmentsforexGlobal marketGovernanceIMFMiddle EastNECANigeriaOutlookRich listSouth AfricaSport BusinessTradeU.KWest AfricaWorld Economic forum
      Insurance Business

      Enterprise risk management surges amid pandemic, RIMS reports

      February 25, 2021

      WORLD BUSINESS & ECONOMY

      Hyundai to recall 82,000 electric cars over battery malfunction

      February 25, 2021

      Frontpage

      Global health insurance premiums fall amid pandemic, says new report

      February 24, 2021

      Frontpage

      Insurance M&A record highest growth in Africa, Middle East in 2020

      February 23, 2021

  • COMMODITIES
  • ENERGY
    • AllConferenceElectricityOil and GasPowerRenewable
      Oil and Gas

      REA delivers 100kW hybrid solar mini grid to Edo community

      February 25, 2021

      Oil and Gas

      OPL 310: LEKOIL engages Optimum Petroleum over CRSA agreement

      February 25, 2021

      Frontpage

      Nigeria still losing 200,000bpd crude daily as NNPC enlists army’s intervention

      February 25, 2021

      Frontpage

      Nigeria to sell 170MW electricity capacity to Togo from Calabar plant

      February 24, 2021

  • TECHNOLOGY
  • MANUFACTURING
  • ANALYSIS
    • Analyst Insight

      Coronation MB analysts project sharp rates rise after Nigeria recession exit

      February 25, 2021

      Analyst Insight

      How NITDA can further foster data protection compliance in Nigeria

      February 22, 2021

      Analyst Insight

      Do we need more start-ups in insurance?

      February 16, 2021

      Analyst Insight

      Naira, PMI’s and Inflation in focus

      February 16, 2021

PMI Index

PMI expands in July amidst weakening manufacturers’ confidence

August 2, 2019690 views0 comments

Although the Central Bank of Nigeria (CBN) reported an expansion in the country’s manufacturing purchasing managers index (PMI) for the month of July (57.6 points), local manufacturers’ confidence in the economy has dropped in the second quarter.

Manufacturing and non-manufacturing PMI points are aggregated by the CBN following a survey conducted by its statistics department. Respondents are purchasing and supply executives of both sectors.

But the second quarter (Q2) composite outcome of the Manufacturers’ CEO’s Confidence (MCCI) index which came in at 50.6 points, reflects a weaker manufacturers’ confidence in the economy when compared with Q1 performance of 51.3 points.

Some of the challenges cited by the manufacturers to inform the weakening confidence were poor electricity and gas supplies, non-reliability of gas supply, scarcity of diesel, high cost of LPG.

According to the Manufacturers Association of Nigeria (MAN), the MCCI data is an indication of shrinking manufacturing activity, as the index essentially, gauges manufacturers’ perception using a set of diffusion factors, macroeconomic conditions, and business operating environment indicators.

Specifically, the current MCCI revealed that more sub-sectors and industrial zones performed below the 50-point threshold against what obtained in the first quarter.

MAN, thus advocated for the government to urgently address the challenges responsible for the observed downward trend.

MAN attributes the weak performance to the persistence of numerous operating challenges limiting manufacturing activities. Precisely, the indexes of current business condition in Q2 dropped to 43 points from the 45.5 points recorded in Q1; Current Employment Condition, which stood at 38 points also weakened to 35 points, while production expectation in the next three months decelerated marginally from 65.5 points to 64.5 points during the period in review.

However, indexes of ‘Business Condition for the next ‘3 months’ improved from 54.5 points recorded to 59 points between Q1 and Q2. ‘Employment Condition for the next ‘3’ months’ also strengthened marginally from 52.5 points to 53 points during the period.

The improvement in ‘Business Condition’ and ‘Employment Condition’ for the next ‘3’ months’ expressed the degree of hope and intensity of the level of expectation of CEOs of manufacturing concerns that government would do the needful to make manufacturing operating environment friendlier before year-end.

Analysis of sectoral responses showed that seven manufacturing sub-sectors performed slightly above the 50-point threshold of good performance in the following order: Domestic/Industrial Plastics, Rubber & Foam (54.5); Motor Vehicle & Miscellaneous Assembly (54.5). others are Food, Beverage and Tobacco (53.5); Pulp, Paper & Paper Products Printing, Publishing & Packaging (52.0); both Textile, Wearing Apparel, Carpet, Leather and Leather Footwear and Chemical & Pharmaceuticals recorded 51 points; while Electrical & Electronics stood at 50.5 points.

Three other sub-sectors were below 50 points in the following order: Wood & Wood Products (48.0); Non-Metallic Mineral Products (47.5); and Basic Metal, Iron & Steel, Fabricated Metal recorded 46.5 points in the second quarter of 2019.

MAN explained that although a majority of the sub-sector recorded fairly improved level of performance, there is still a need for Government to initiate robust support measures that will not only stimulate better performance in all the sub-sectors but save those with performances below the 50-point threshold from imminent collapse.

“We recommend that government improves basic infrastructures within strategic economic hubs nationwide, classify manufacturers as strategic users of gas, expand the roads leading to Lagos Ports and make other ports outside Lagos functional to reduce cargo traffic, and stimulate economic activities in those locations. “Government should also streamline existing forex windows, make more forex available for importation of manufacturing inputs that are not locally available and provide appropriate incentives for the struggling sub-sectors,” MAN added.

Share on Facebook Tweet Email
TagsCBN MAN PMI
PreviousNNPC looks to extend trade relations with Turkey beyond crude oil
NextWeak agricultural export threatens Nigeria AfCFTA share

Leave a comment

- Cancel reply

MARKET DATA

Market Videos

Recent Posts

  • Petrol: CSOs canvass labour union’s support for deregulation
  • Lions’ Den 2021: An opportunity for promising Nigerian entrepreneurs
  • Nigeria bourse in red as selloffs in banking, consumer goods stocks see bears return  
  • African Alliance paid N967m in claims in first 40 days of 2021, MD reveals
  • REA delivers 100kW hybrid solar mini grid to Edo community

World

Africa

Buhari, Okonjo-Iweala congratulate Adesina over reelection as AfDB President

Europe

EU businesses to cut investments in 2020, says EIB report

America

U.S. increases cost of visa application for Nigerians

Africa

Thatcher-Loving Nigeria Candidate Plans to Overhaul Economy

Africa

AfDB scales up industrialization pace on the continent, delivers improved business access to finance, skills, energy

Frontpage posts

0

Libya to keep oil output stable as OPEC agree to joint cap of 2.8m bpd for Libya, Nigeria

Frontpage December 6, 2017

1
2

Nigeria’s refineries need $1.2bn for repairs- Minister

Frontpage June 9, 2017

3

CBN’s MPC in a thicket with little room to maneuver rates

Frontpage July 20, 2020

4

Global stocks rebound on China trade deal indication, bonds fall

Frontpage May 8, 2019

5

eTransact posts N118.25m loss in three months

Companies August 23, 2020

SUPPORT

  • Photo Gallery
  • Help Centre
  • About Us
  • Accessibility

LEGAL & PRIVACY

  • Terms & Conditions
  • Privacy
  • Cookies
  • Copyright

SERVICES

  • Conferences & Events
  • Analysts Research
  • Advertising Rate
  • Ebooks

TOOLS

  • Portfolio
  • Newsletters
  • News feed
  • Currency Converter

SUBSCRIBE

Join us to get latest updates on business related news.

[mc4wp_form id="3076"]
  • ABOUT US
  • CONTACT US
  • CAREERS
  • TERMS & CONDITIONS
  • PRIVACY POLICY
Copyright 2017. All rights reserved. BusinessAMLive. A Businessnewscorp Member Company.