Business Activity Expands As PMI Hits 52.7 in July

Nigeria’s concern activities maintained an upward trajectory successful July 2025 arsenic the composite Purchasing Managers’ Index (PMI) strengthened to 52.7 scale points, marking the eighth consecutive period of enlargement crossed cardinal sectors of the economy.

According to the latest PMI study released by the Central Bank of Nigeria (CBN), retired of the 36 subsectors surveyed, 26 recorded enlargement successful economical activity, reflecting sustained resilience successful the backstage assemblage contempt choky fiscal conditions and user request pressures.

The manufacture assemblage recorded an scale of 51.1 points successful July, extending its expansionary tally to the eighth consecutive month. Out of the 17 sub sectors reviewed, 11 posted enactment maturation buoyed by accrued accumulation levels. However, analysts observed that momentum successful the concern abstraction moderated somewhat compared to June, owing to weaker user request that weighed connected caller orders.

At 52.8 scale points, the services assemblage witnessed its sixth consecutive period of expansion, reaching its strongest level successful 19 months. Ten subsectors recorded maturation successful July, with Finance and Insurance, ICT, and Education among the cardinal drivers. The study attributed the work betterment to a pick-up successful concern enactment and caller orders.

Similarly, the agriculture assemblage sustained its dominance, expanding for the 12th consecutive period astatine 53.9 scale points—all 5 sub sectors recorded growth, supported by accrued farming activities. However, the sector’s PMI eased compared to the erstwhile month, reflecting seasonal slowdown and inventory build-up during the thin season.

The study besides highlighted that the agriculture assemblage recorded the widest input and output terms spread astatine 8.6 points, underscoring the outgo pressures faced by farmers. In contrast, the services assemblage posted the lowest spread astatine 4.8 points, reflecting comparative terms stability.

According to analysts, the broad-based enlargement signaled resilience successful the economy, peculiarly with the naira stabilising and ostentation pressures moderating. Analysts astatine Cordros Research however,  cautioned that seasonal headwinds successful agriculture, coupled with choky fiscal conditions, could measurement connected momentum successful the coming months.

“While the PMI speechmaking remains successful expansionary territory, the concern assemblage is inactive contending with anemic user demand, portion agriculture faces seasonal constraints. Services, however, look to beryllium the strongest maturation anchor astatine the moment” the analysts noted successful an emailed note.