CBN PMI Report: Economy Expands for The 9th Straight Month
The Central Bank of Nigeria’s (CBN) Purchasing Managers’ Index ( CBN PMI) for August 2025 showed that the composite PMI stood at 51.7 index points, signaling sustained expansion in economic activity for the ninth month in a row.
Agriculture and Services Drive Expansion
Agriculture continued to lead growth, recording 53.9 index points in August. This marked the thirteenth consecutive month of expansion, powered by increased farming activity and stronger output.
The services sector also posted steady gains, rising to 51.9 index points for the seventh straight month. The growth in services was largely supported by improved business activity across different segments.
Industry Faces Contraction and Rising Costs
In contrast, the industry sector slipped into contraction, falling to 49.1 index points in August. Declines were recorded across most indicators, except delivery time.
The sector also recorded the widest gap between input and output prices at 7.4 points, compared to 3.7 points in services. This reflects firms’ efforts to absorb rising costs in order to stay competitive, even as profit margins continue to shrink.
Additional data showed further weakness: the industry’s output index declined to 49.6 points from 52.7 in July, while new orders fell to 47.2 points from 49.3. Employment also dropped to 48.9 points, down from 50.4 in the previous month—an indication of reduced business confidence and lower hiring capacity.
Policy Support and SME Financing Critical for Growth
Analysts emphasize the need for targeted policy interventions to sustain momentum in agriculture and address persistent cost challenges in industry. Local production of essential inputs—such as fertilisers, energy, and industrial raw materials—would reduce reliance on imports and help stabilise costs.
Equally important is improving access to affordable credit for small and medium-sized enterprises (SMEs) across all sectors. Expanding credit availability can support investment, encourage job creation, and strengthen competitiveness in Nigeria’s economy.
