The Central Bank of Nigeria Manufacturing PMI dropped to 58.5 in January of 2019 from 61.1 in the previous month. Still, it marks the twenty-second consecutive month of expansion in the manufacturing sector. Output (59.3 from 63.6 in December); new orders (58.9 from 62.3) and employment (56.4 from 57) rose at a slower pace. In addition, export orders fell at a faster pace (41.4 from 42.1). At the same time, purchasing activity (52.5 from 56.1) and raw materials inventories (59.9 from 63.2) increased less while stock of finished goods went up (52.3 from 50.6). On the price front, both input price inflation (62.2 from 61.3) and output charge inflation (52.5 from 51.6) accelerated. Manufacturing Pmi in Nigeria averaged 51.39 from 2014 until 2019, reaching an all time high of 61.10 in December of 2018 and a record low of 41.90 in June of 2016.
Manufacturing Pmi in Nigeria is expected to be 57.47 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Manufacturing Pmi in Nigeria to stand at 54.00 in 12 months time. In the long-term, the Nigeria Manufacturing PMI is projected to trend around 51.30 in 2020, according to our econometric models.