By Anita Dennis
Nigeria’s economic activities showed further signs of resilience in July 2025, expanding for the eighth straight month, according to the latest Purchasing Managers’ Index (PMI) Survey Report released by the Central Bank of Nigeria (CBN).
The report revealed that the composite PMI stood at 52.7 index points, indicating sustained expansion across major sectors. Of the 36 subsectors surveyed, 26 recorded growths, signalling broad-based improvements in production, services, and agriculture.
Industry, Services, and Agriculture Drive Growth
Breaking down the data, the industry sector grew for the eighth consecutive month, registering 51.1 index points in July. The services sector followed closely, expanding for the sixth month at 52.8 index points, while agriculture led the momentum with a twelfth consecutive month of growth, recording 53.9 index points.
Among the subsectors, transportation equipment recorded the highest growth, reflecting increased activity in logistics and manufacturing. On the other hand, paper products reported the steepest decline, contributing to the list of 10 subsectors that moderated during the month.
Inflation Expectations Show Signs of Easing
Beyond output and production, the CBN’s latest Inflation Survey Report also offered a glimpse into shifting consumer sentiment. The proportion of Nigerians who perceived inflation to be high dropped to 66.2 percent in July, down from 71 percent in June.
According to the apex bank, the decline was driven largely by households, with their perception index falling to 63.4 percent from 69.5 percent in June. This indicates cautious optimism that inflationary pressures may begin to stabilise in the coming months.
A Delicate but Promising Recovery
The consistent PMI expansion underscores ongoing recovery efforts in Nigeria’s economy despite lingering structural challenges. Analysts say the trend, if sustained, could translate to stronger employment figures, improved manufacturing confidence, and a more stable outlook for 2025.
The CBN, which closely monitors PMI as a leading indicator of economic health, noted that maintaining this growth streak would require policy consistency, targeted support to lagging subsectors, and continued attention to inflationary risks that weigh on household consumption.
