CBN releases PMI report for April

Central Bank of Nigeria (CBN) has released Purchasing Managers’ Index (PMI) survey report for the month of April 2018, showing faster expansions in both manufacturing and non-manufacturing businesses. The CBN survey results with positive trend showed an addition to the economy’s early expansion following the 1.92 per cent real Gross Domestic Product (GDP) growth of fourth quater 2017 and 0.83 per cent overal real GDP growth of 2017.
The report showed that expansion in the manufacturing sector was constrained by rising average manufacturing input cost and slowing demand, while, the growth in the non-manufacturing sector was fuelled by increased customer demand amid stable input cost. According to the survey, the manufacturing composite PMI stood at 56.9 index point in April 2018 higher than 56.7 index point in the preceding month, recording the thirteenth consecutive expansion.
The increase in manufacturing composite PMI occurred despite the increase in employment level which went to 55.0 in April from 53.3 in March while raw materials purchases increased to 59.5 in April from 59.4 in March. Supplier delivery time index also increased to 57.4 from 56.6 reported in the preceding month. The production level at the manufacturers expanded slower, at 58.6 i:within the period under review from 59.1 in the previous quarter as new orders expansion slowed, to 55.8 in April against 56.1 in March.
Of the sixteen manufacturing sub-sectors under survey,12 sectors recorded expansions compared to 11 recorded in the preceding month. The survey also indicated that manufacturers of ‘Fabricated metal products’, ‘Furniture & related products’, ‘Petroleum & coal products’, ‘Plastics & rubber products’ and ‘Textile, apparel, leather & footwear’ recorded expansions: of 58.6, 55.0 , 79.0 , 54.8 and 60.0 from 56.10, 46.70, 61.00, 52.30, N51.30 respectively. On the other hand, nonmanufacturing composite PMI registered 57.5 points in April growing higher against 57.2 points in March, bringing it to 12th consecutive expansion.
The sustained expansion in non-manufacturing sector was driven by faster increase in business activity, at 58.8 in April from 58.7 in comparable period supported by faster increase in incoming business orders, at 56.4 from 55.8. Employment level also rose, to 55.3 from 55.1 reported in the preceding period while inventory expanded faster, at 59.5 against 59.2 point.
The survey further showed that two of the eighteen nonmanufacturing sub-sectors surveyed recorded expansions. “Agriculture” expanded at a slower pace, at 59.8 from 62.2, as did “Finance & insurance” and “Wholesale/Retail trade” which pointed to 64.8 against 67.0 reported in the preceding period and 55.7 from 57.3 in month of march respectively. Meanwhile, In another development, CBN’s freshly released depository corporations survey, showed sustained m-o-m increase in Broad Money, by 1.18 per cent to N24.30 trillion in March 2018; as an 8.49 per cent m-o-m increase in Net Foreign Assets (NFA) to N15.62 trillion more than off set a 9.76 per cent m-o-m decrease in Net Domestic Assets (NDA) to N8.68 trillion.
Thev apex bank said that the growth in NFA was partly attributed to increase in oil dollar revenue, boosting external reserves and further strengthened Nigeria’s position as a net lender to the rest of the world. On domestic asset creation, the apex said that the decrease in NDA resulted from a 2.39 per cent increase in Net Domestic Credit (NDC) to N26.27 trillion, accompanied by a 1.71 per cent m-o-m increase in Other Liabilities (net) to N17.58 trillion in the month under review. Further breakdown of NDC showed a 0.78 per cent m-o-m moderation in Credit to the Private sector standing at N22.44 trillion share of NDC increased to 85.44 per cent from 84 per cent’, accompanied by a 10.84 decrease in Credit to the Government to N3.82 trillion.
The increase in credit to the Government was, in part, informed by lower borrowings in line with the Federal Government’s debt restructuring which favours longer maturing local and foreign debt, over short term debt. Month-on-month, Nigerian Treasury bills auctioned at the primary market fell by 32.40 per cent to N343.72 billion.