The Purchasing Manager Index (PMI) in January 2025 was 50.2 points, indicating the second consecutive increase in economic activity as captured in the latest report from the Central Bank of Nigeria (CBN).
This data reflects positive trends in the most important sectors, including industry and agriculture, but the services sector experienced contraction.
The index breakdown showed that the combined version, new orders, and employment levels recorded growth of 50.9, 50.2, or 50.2 points, reflecting the total expansion during the review period. However, raw material composites have returned to 49.8 points, and supplier delivery times slowed to 49.6 index points, indicating supply chain delays.
An analysis of 36 sub-sectors checked in industry, services and agriculture showed that 17 sub-sectors reported economic activity growth and that the transport equipment sub-sector recorded the highest expansion. Conversely, 17 sub-sectors recorded a decline, which led to forestry reducing the sharpest contraction, but the basis for the two remained unchanged.
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The Industrial Sector PMI showed that 17 of the 17 subscriptions surveyed had contraction, indicating that undercutters for plastic and rubber products remained stable.
Transport equipment has become a major sub-sector for expansion, while the partial sector of non-metallic mineral products has produced the highest levels of shrinkage. The overall industry sector index was 51.3 points, confirming the expansion of industrial activity in January 2025.
Details from the industry sector showed that production and employment levels rose 54.0 and 52.4 points. In the meantime, new raw materials orders and stock have returned to 49.6 points. Supplier delivery times also slowed, recording 49.6 index points.
However, the agricultural sector continued its positive trajectory, recording a total index of 52.5 points. This indicates an extension. Four of the five subscribers surveyed recorded growth during the closure. Harvest production led to increased growth, and forestry recorded a decline. Additionally, raw material production, new orders, employment and inventory within the agricultural sector reflected growth at index points of 51.8, 54.3, 51.3 and 52.4.
PMI is an important economic indicator derived from the answers of businesses to changes in various aspects of business. Readings of PMIs above 50.0 points indicate an expansion of business activity, while readings below 50.0 points interpret a contraction. An index of exactly 50.0 points does not mean a change in the economic situation.
