September 4, 2026/CSL Report
The Purchasing Managers’ Index (PMI) expanded for the third consecutive month in August 2026, according to the latest report released by the Central Bank of Nigeria (CBN). The Composite PMI rose to 52.7 points from 51.1 points in July, extending the recovery in economic activity following contractions in April and May, when the index stood at 49.4 and 49.6 points, respectively.
For context, a PMI reading above 50.0 indicates expansion, while a reading below 50.0 signals contraction. The survey, which covered 1,900 respondents across the agriculture, services, and industry sectors, showed that 19 of the 32 subsectors surveyed recorded expansion, while 13 saw contractions.
The improvement in the Composite PMI was broad-based across the three sectors, with Agriculture, Services and Industry all recording expansion during the month. The Agriculture PMI increased to 53.4 points, extending its expansion streak to 25 consecutive months, while the Services PMI rose to 53.3 points from 51.1 points in July, sustaining its recovery after three consecutive months of contraction. Likewise, the Industry PMI returned to expansion at 50.6 points, following four consecutive months below the 50-point threshold.
The improvement was also reflected in the key components of the Composite PMI, as output (53.9 from 51.8 in July), employment (52.4 form 51.1), new orders (51.8 from 50.8) and suppliers’ delivery time (53.3 from 51.3) all remained in expansionary territory. The stock of raw materials index also improved to 51.6 points from 49.6 points (below the 50-point threshold) in July, pointing to firmer inventory accumulation.
The August PMI points to a continued, albeit modest, recovery in overall economic activity, driven primarily by sustained growth in the services and agriculture sectors, alongside a gradual recovery in industry. Looking ahead, we expect economic activity to sustain its expansionary trajectory through Q3, supported by continued momentum in Services and Agriculture and a gradual improvement in Industry. This reinforces our expectation for GDP growth of around 4.5% y/y in Q3 2026 (see CSL Economics and Strategy: “Nigeria records fastest growth outturn in five years”, 2 September).
Click here to download full report: CSL Nigeria Daily – 4 September – Economy