MON SEPT 07 2026-theGBJournal| Nigeria’s private-sector activity strengthened in August, with the composite Purchasing Managers’ Index (PMI) rising to 52.7 points from 51.1 points in July, extending its expansionary run to a third consecutive month.
The latest reading provided by the Central Bank of Nigeria (CBN), points to a modest recovery in economic activity, supported by continued growth in the services and agriculture sectors and a return to expansion in industrial activity after months of contraction.
Of the 32 subsectors surveyed, 19 recorded expansions, while 13 reported declines in business activity.
The Industry PMI rose to 50.6 points in August, signalling a recovery from contractions recorded in industrial activity since April 2026.
However, the sector remained uneven, with 11 of the 16 subsectors surveyed recording declines, compared with five that expanded.
The Services PMI provided a stronger boost to overall activity, climbing to 53.3 points, its second consecutive month of expansion.
Nine of the 11 services subsectors recorded growth, while two contracted.
Agriculture remained the strongest-performing major sector.
Its PMI increased to 53.4 points, marking the 25th consecutive month of expansion, with all five subsectors surveyed recording growth.
Price pressures also showed mixed but generally encouraging signals.
The Composite PMI’s input price index fell by 0.2 points in August, while the output price index increased by 1.0 point.
In the Services and Agriculture sectors, month-on-month increases in output prices were higher than their corresponding input price indices.
Services, Agriculture Sustain Growth
The August Composite PMI of 52.7 points reflected expansion across the Industry, Services and Agriculture sectors, pointing to improving business conditions and a cautiously positive outlook for economic activity.
Key components of the Composite PMI remained in expansion territory.
The Output Index stood at 53.9 points, Employment at 52.4 points and New Orders at 51.8 points, indicating continued momentum across production, hiring and demand.
The Composite Stock of Raw Materials Index also remained expansionary at 51.6 points, while the Suppliers’ Delivery Time Index rose to 53.3 points, signalling an improvement in supplier response times.
Across the 32 subsectors surveyed, Oil Refining recorded the strongest growth in August.
At the other end of the spectrum, Motor Vehicles & Assembly recorded the steepest contraction, highlighting the uneven pace of recovery across the economy.
Overall, the August PMI results suggest that Nigeria’s economic activity is gaining some traction after a period of weakness.
The combination of sustained growth in Services and Agriculture, alongside a gradual recovery in Industry, helped push the Composite PMI further into expansion.
The continued expansion in the Composite PMI, coupled with easing input price pressures, points to improving business conditions and offers a cautiously optimistic outlook for economic growth in the near term.
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