Economic activities increase 6th consecutive month – CBN
Economic activities increase 6th consecutive month – CBN
The Central Bank of Nigeria, CBN, report has indicated that economic activities expanded for the sixth consecutive month at 52.1 index points in May 2025.
Disclosing this in its Purchasing Managers Index (PMI) Report for May 2025, CBN also noted that the industry (51.6 index points), service (51.7 index points) and Agriculture (53.4 index points) sectors recorded growth during the review period.
The report showed that Petroleum and Coal Products subsector in the Industry sector recorded highest expansion in the month while the Paper products subsector reported highest decline.
CBN’s PMI: “The composite PMI for May 2025, at 52.1 index points, indicated an expansion in economic activities for the sixth consecutive month.
“A further breakdown of the 36 subsectors across the Industry, Services and Agriculture Sectors showed that twenty (20) subsectors reported growth in economic activities with Petroleum & Coal Products recording the highest growth during the review month.
“Sixteen (16) sub-sectors recorded decline in economic activities with Paper Product reporting highest decline.
“The Industry Sector recorded expansion for the fifth consecutive month in May 2025, largely driven by increased outputs of the sector.
“Among the 17 sub-sectors surveyed in the Industry sector, 9 recorded expansions, while the remaining 8 subsectors indicated contraction.
“The sub-sector with the highest expansion was Petroleum & Coal Products, while Paper Products recorded the highest contraction.
“The Services Sector index indicated expansion in the review month, attributable to increased incoming businesses.
“Among the 14 sub-sectors covered in the survey, 7 recorded expansion, while 7 subsectors indicated contraction.
“Educational Services subsector achieved the highest expansion, while Transportation & Warehousing recorded the highest contraction.
“The Agriculture Sector recorded expansion for the tenth consecutive month in May 2025.
“The main driver of the expansion was increase in new orders.
“Of the 5 sub-sectors under the Agriculture Sector, 4 subsectors recorded expansions, while only Fishing/Fish Farming recorded contraction in May 2025.
“The sub-sector with the highest expansion was Forestry.”
On the input price index, the apex bank’s PMI report stated: “Input price indices for the Composite, Industry, Services and Agriculture sectors were higher than their output price indices, indicating that businesses faced cost pressure.
“The gap between higher input costs and more subdued output price increases tends to mount pressure on business profit margins.
“Cost absorption by firms is likely to be unsustainable in the long term and may foreshadow future consumer price inflation.
“Agriculture Sector recorded the highest cost absorption index in the month of May 2025 at 10.5 points, while services recorded the lowest at 4.4 points.
“Agriculture sector had the highest input price, while Industry and Agriculture sectors had the highest output price indices in May 2025.
“The Services sector had the least input and output prices in the period under review.
“Overall, the May 2025 PMI data indicated a continued, though moderate, expansion in economic activity across Nigeria.
“The sustained expansion across key sectors underpins a favorable outlook for the second quarter of 2025, Q2’25.”
