‘Business Confidence Remains High Despite Dip In June PMI’

Economic activities in Nigeria’s private sector expanded further in June 2025, albeit at a slower pace compared to the previous month, the Central Bank of Nigeria (CBN) has revealed in its latest Purchasing Managers’ Index (PMI) report.

According to the report, the Composite PMI stood at 51.6 points in June, down from 52.1 in May, indicating continued but moderating growth in the real sector. A reading above 50 points signals expansion, while below 50 indicates contraction

The June report marks the seventh consecutive month of expansion, though the 0.5-point dip reflects a softening in the pace of recovery, particularly in the manufacturing and construction sectors.

The CBN PMI report attributed the slower growth to “moderating inventory accumulation and less aggressive restocking activities” by firms. Despite a slower expansion, the report noted that “respondents remained optimistic,” with a continued positive outlook for the Nigerian economy over the next few months.

A breakdown of the index showed that the non-manufacturing sector sustained its momentum, led by steady growth in services and agriculture. In contrast, the manufacturing sector saw a mild deceleration, dragged by lower output and a slowdown in new orders.

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While the employment level index remained relatively stable, unchanged from May, the inventories index declined further, signaling more caution from firms in stocking up raw materials amid an unpredictable demand environment.

Despite the month-on-month dip, business operators expressed confidence in future output levels, supported by the expectation of improved macroeconomic stability and better access to inputs.

“The outlook for output remains positive across sectors, reflecting growing confidence in policy reforms and improving inflation dynamics,” the report said.

Analysts believe the easing inflation trend, 22.9 per cent down from 23.7 per cent in May, could encourage the Central Bank to adopt a more accommodative monetary stance in coming quarters. Market watchers anticipate a potential policy rate cut of up to 150–200 basis points if the disinflation trend holds.