September 18, 2025/CSL Research

The Central Bank of Nigeria (CBN) has released the August 2025 Purchasing Managers’ Index (PMI) report, covering the Agriculture, Services, and Industry sectors. The composite PMI stood at 51.7 points, indicating continued growth in business activity and marking the ninth consecutive month of expansion. However, this was the weakest reading in six months, down from 52.3 in June and 52.7 in July. (A PMI above 50.0 signals expansion, while a reading below 50.0 indicates contraction).

Across the three major sectors, Agriculture sustained its strong momentum with a PMI of 53.9 points, unchanged from July and extending its expansion streak to 13 months. The Services sector also grew for a seventh straight month, though at a slower pace, easing to 51.9 points from 52.8 in July. In contrast, the Industry sector slipped into contraction, posting 49.1 points compared with 51.1 in July, thereby ending a seven-month expansion run. Overall, the economy remains in growth territory, but the industrial slowdown highlights ongoing challenges in the real sector.

Among the key PMI sub-indicators, suppliers’ delivery times and raw material inventories remained in expansion territory but softened slightly. Delivery times eased to 52.4 points in August (July: 53.1), while inventories slipped to 51.2 points (July: 51.8), reflecting lingering supply chain pressures and ongoing stock drawdowns after June’s restocking surge (52.4 points). New orders also slowed, falling to 50.9 points from 52.4 in July, indicating weaker demand. Employment levels moderated as well, declining to 51.0 points from 51.8 in the previous month, suggesting mild pressure on labour market conditions.

Output and new orders remained in expansion across Agriculture and Services but contracted in the Industry sector, underscoring pressures in manufacturing where weak consumer purchasing power continues to constrain production volumes. Across all sectors, input prices rose at a faster pace than output prices, further squeezing business margins. Looking ahead, the composite PMI is expected to remain in expansion, supported by the ongoing moderation in inflation, which could help ease input cost pressures. However, the outlook for the broader economy will hinge on the performance of the Industry sector, as prolonged weakness in manufacturing could dampen overall recovery momentum.

Click here to download full report: CSL Nigeria Daily – 18 September 2025 – PMI.pdf​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​