…The Agriculture Sector recorded the highest cost absorption index in the month of June 2025 at 9.8 points while the Services Sector recorded the lowest at 4.4 points
WED JULY 09 2025-theGBJournal| While recent months have been characterized by Nigerian businesses broadly expanding, businesses are also struggling to contain the ballooning gap between higher input costs and output price.
The Central Bank of Nigeria (CBN) in their June Purchasing Managers Index (PMI) report, flagged the unsustainable cost absorption by firms and renewed inflation risks, warning that the cost absorption by firms is likely to be unsustainable in the long term and may foreshadow future consumer price inflation.
The apex bank noted that the expanding gap between higher input costs and output price tends to mount pressure on business profit margins.
The Agriculture Sector recorded the highest cost absorption index in the month of June 2025 at 9.8 points while the Services Sector recorded the lowest at 4.4 points, the CBN PMI report indicates.
Meanwhile, the Nigerian Composite Purchasing Managers Index (PMI) and its’ three derived sectors, Industry, Services and Agriculture expanded for the sixth consecutive month, signaling improvement in economic activities across sectors, according to the Central Bank of Nigeria’s (CBN) June 2025 PMI report.
The industry sector index, at 51.4 points indicates expansion in industrial activities in June 2025. Services Sector index grew at 51.3 points while Agriculture expanded, at 55.2 points.
The composite output, new orders and employment indices grew at 53.3, 52.3 and 50.5 points respectively, faster than expected.
The PMI report also shows the composite stock of raw materials growth at 52.4 index points just as suppliers’ delivery reached 52.9 index points, indicating faster deliveries.
Twenty-five subsectors reported growth in economic activities with forestry recording the highest growth during the period under review.
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