Economic Activity Expands for 5th Consecutive Month as PMI Rises To 53.2

Nigeria’s economic activity sustained its expansion for the fifth consecutive month in October 2026, as improved performance in the industrial and agricultural sectors outweighed a marginal slowdown in the services sector.

The Central Bank of Nigeria’s (CBN) October 2026 Purchasing Managers’ Index (PMI) report showed that the Composite PMI increased to 53.2 points from 53.0 points in September, indicating a modest strengthening in the pace of economic activity.

The latest reading reflects continued improvement in business activities across the three major sectors of the economy, with agriculture maintaining its position as the best-performing sector. According to the report, 24 of the 32 subsectors surveyed recorded expansion during the review month, while eight subsectors contracted.

The Industry PMI rose to 52.6 points from 52.0 points in September, representing its third consecutive month of expansion, while the Agriculture PMI increased to 54.7 points from 53.1 points, extending its expansion streak to 27 consecutive months.

However, the Services PMI moderated to 52.7 points from 53.2 points in September, although the sector maintained its fourth consecutive month of expansion.

The CBN report attributed the improvement in the composite reading to expansions recorded across Industry, Services and Agriculture. A breakdown of the industrial sector showed that 12 of the 16 subsectors surveyed expanded, while four contracted.

Cement recorded the highest PMI in the industrial sector at 60.2 points, reflecting improved business activities, while Chemical and Pharmaceutical Products recorded the weakest performance at 43.4 points.

The industry’s production index rose to 53.5 points in October from 53.2 points in September, while new orders increased to 52.1 points from 51.7 points. Employment also improved, with the employment index rising to 52.7 points from 51.1 points in the preceding month.

Similarly, the raw materials inventory index increased to 51.8 points from 51.1 points, remaining above the 50-point threshold that separates expansion from contraction. The Services sector, despite recording a marginal moderation in its overall PMI, sustained expansion across its major business activity indicators.

Business activity or output stood at 54.2 points, while employment increased to 53.5 points. New orders and inventories recorded 51.7 points and 51.1 points, respectively.

Of the 11 services subsectors surveyed, seven expanded while four contracted. Educational Services recorded the highest PMI at 60.2 points, while Arts, Entertainment and Recreation recorded the lowest at 47.1 points.

In the agricultural sector, all five subsectors recorded expansion, with Livestock leading at 56.4 points, followed by Forestry at 55.3 points and Fishing and Fish Farming at 54.4 points. Crop Production recorded 52.8 points, while Agricultural Support Services posted 52.0 points.

The sector’s general farming activities index increased to 56.8 points from 54.6 points in September, while new orders rose to 55.6 points from 54.4 points. Employment increased to 52.9 points from 51.4 points, while the raw materials inventory index rose to 53.6 points from 52.1 points.

The Composite input price index increased by 0.7 points in October, while the output price index rose by 0.5 points. The report showed that input prices increased in the Services and Agriculture sectors but declined in Industry. Meanwhile, output prices increased in Industry and Agriculture but declined in Services.

The Composite input price index stood at 64.0 points, compared with 63.3 points in September, while the output price index increased to 58.9 points from 58.4 points. The Industry input price index eased to 62.4 points from 63.5 points, while its output price index increased to 58.0 points from 56.7 points.

In Services, the input price index rose to 62.8 points from 62.0 points, while the output price index declined to 58.4 points from 59.3 points. Agriculture recorded the highest input price index at 68.3 points, while its output price index stood at 61.1 points.