July 10, 2025/CSL Research
The Central Bank of Nigeria (CBN) has released the June 2025 Purchasing Managers’ Index (PMI) report, covering the Industry, Services, and Agriculture sectors. The composite PMI rose slightly to 52.3 points, up from 52.1 points in May, marking the seventh consecutive month of economic expansion and highlighting the sustained positive momentum in the Nigerian economy. For context, a PMI reading above 50.0 indicates growth in business activity, while a reading below 50.0 signals contraction. All three sectors remained in the expansion zone in June.
Agriculture recorded a notable improvement, with a PMI of 55.2 points (up from 53.4 in May), marking the eleventh consecutive month of growth. Industry eased slightly to 51.4 points (from 51.6 in May), but still achieved its seventh straight month of expansion. Services also expanded, though at a slower pace, posting a PMI of 51.3 points compared with 51.7 points in May, representing its fifth consecutive month of growth. Overall, the June PMI results reflect steady resilience across sectors and continued broad-based improvements in business conditions.
In June 2025, suppliers’ delivery times and raw material inventories recorded the strongest growth among the key PMI indicators. Suppliers’ delivery times rose to 52.9 points (up from 52.3 in May), while raw material inventories increased to 52.4 points (from 51.4 in May). These improvements reflect more efficient supply chain dynamics and fresh inventory restocking by manufacturers following several months of drawdowns after the inventory buildup seen in February 2025 (PMI: 52.0 points). New orders posted a PMI of 52.3 points in June, slightly lower than 52.7 points in the previous month, indicating continued demand, though at a more moderate pace. Employment levels showed the slowest expansion among the indicators, with a PMI of 50.5 points, compared to 51.1 points in May. This indicates lingering strains in the labour market as well as seasonal variations in labour usage across industry and services sub-sectors.
During the month, output levels and new orders remained in the expansion zone across all sectors, although pressures on new orders persisted in the industry and services segments as consumer purchasing power remained under strain. Notably, average input prices continued to rise faster than average output prices across all surveyed sectors, signalling ongoing pressure on business profit margins. Looking ahead, overall production and composite output are expected to stay in expansion territory, supported by the anticipated further moderation in inflation, which should help ease input cost pressures. However, upside risks to inflation persist and could weigh on the pace of improvement.
Click here to download full report: CSL Nigeria Daily – 10 July 2025 – PMI.pdf
