The Central Bank of Nigeria (CBN) says that the Nigerian economy exited contraction in June as the Purchasing Managers’ Index (PMI) rebounded to 50.1 points from 49.6 points in May, driven by sustained expansion in the agriculture sector despite continued weakness in industry and services sectors.
According to the latest PMI Report released on Tuesday by the CBN, the composite PMI rose to 50.1 points in June 2026, signaling a return to expansion in overall economic activity after the contraction recorded in May 2026.
“Of the 36 subsectors surveyed, 19 reported expansion, while 17 recorded declines in business activity,” the report said.
The CBN attributed the recovery entirely to agriculture, stating: “The Agriculture PMI increased to 52.1 points in June 2026 from 50.9 points in May 2026, indicating stronger growth momentum and marking the twenty-third consecutive month of expansion in the sector.”
It further noted that “all five agricultural subsectors surveyed recorded growth during the review period,” with Forestry reporting the strongest growth.
The report, however, showed that manufacturing and services remained under pressure.
It stated: “The Industry PMI stood at 49.5 points in June 2026, indicating a contraction in industrial activity,” while “The Services PMI registered 49.4 points in June 2026, reflecting a contraction in business activity within the sector.”
On the outlook for the broader economy, the CBN said: “Overall, the June 2026 PMI points to a modest recovery in overall economic activity, driven by sustained expansion in the Agriculture sector, which offset the contractions recorded in the Industry and Services sectors.”
The report added: “The return of the Composite PMI to expansionary territory, coupled with easing input and output price pressures, suggests improving business conditions and provides a cautiously optimistic outlook for economic growth in the near term.”
Providing further evidence of easing cost pressures, the apex bank stated: “The composite input and output price indices declined by 2.5 and 0.8 points, respectively, in June 2026, suggesting a moderation in cost and selling price pressures.”
The report also noted: “The Industry PMI edged up to 49.5 points in June 2026 from 49.3 points in May 2026, indicating a slower pace of contraction in industrial activity,” while “The Services PMI improved marginally to 49.4 points in June 2026 from 49.3 points in May 2026. Although the sector remained in contractionary territory for the third consecutive month following fourteen months of sustained expansion, the uptick suggests a moderation in the pace of decline.”
Local media reports quoted the CBN as saying in the report that Nigerians remained pessimistic about prevailing economic conditions in June despite growing optimism in PMI outcomes about the medium-term outlook.
GIK/APA