Nigeria’s economic activities expanded for the second consecutive month as the composite Purchasing Managers’ Index (PMI) for January 2025 reading was at 50.2 index points, according to the Central Bank of Nigeria (CBN) report.
A PMI reading above 50.0 points signals an expansion in business activities, while a reading below 50.0 points suggests a contraction.
However, an index of exactly 50.0 points signifies no change in economic conditions.
Specifically, three sectors—industry, services, and agriculture—stood out in the report.
Infact, the Industry Sector improved substantially from a stationary position in December 2024 to an expansionary level in January 2025. Similarly, the Agriculture Sector registered expansion for the sixth consecutive month.
But, the Services Sector index indicated a contraction in economic activities for the month,
The breakdown of the index showed that composite output, new orders, and employment levels recorded growth at 50.9, 50.2, and 50.2 points, respectively, reflecting overall expansion during the review period.
However, the composite stock of raw materials declined to 49.8 points, and the suppliers’ delivery time slowed further to 49.6 index points, suggesting delays in supply chains.
Also, analysis of the 36 sub-sectors reviewed across industry, services, and agriculture indicated that 17 sub-sectors reported growth in economic activities, with the transportation equipment sub-sector recording the highest expansion. Conversely, 17 sub-sectors experienced a decline, with forestry posting the steepest contraction, while two sub-sectors remained unchanged.
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The Industry Sector PMI revealed that out of the 17 sub-sectors surveyed, 10 recorded expansions, six showed contractions, while the plastic and rubber products sub-sector remained stable.
Transportation equipment emerged as the leading sub-sector in terms of expansion, whereas the Non-metallic mineral products sub-sector experienced the highest level of contraction. The overall industry sector index stood at 51.3 points, confirming an expansion in industrial activities for January 2025.
