Economic Activity Expands for Fourth Month as PMI Hits 53 Points - THISDAYLIVE
Nigeria’s economic activity expanded for the fourth consecutive month in September, with the composite Purchasing Managers’ Index (PMI) rising to 53.0 points, as stronger industrial performance supported continued growth across the three major sectors.Citing the Central Bank of Nigeria’s (CBN) September 2026 PMI report, Nairametrics reported that the index increased from 52.7 points in August, supported by improvements in output, new orders, employment and raw material inventories.However, the stronger headline reading masked uneven performance, with nine subsectors contracting and input prices rising faster than output prices in services and agriculture.A PMI reading above 50 points indicates expansion in business activity, while a reading below that threshold signals contraction.
According to the report, new orders recorded the greatest month-on-month improvement among the major components of the composite index, pointing to firmer demand during the review period.The Output Index stood at 53.9 points, while the New Orders and Employment indices registered 53.7 points and 51.5 points, respectively. Raw material inventories also expanded, with the index reaching 52.1 points.
The Suppliers’ Delivery Time Index stood at 52.7 points, indicating improved supplier response times.Across the economy, 23 subsectors recorded expansion, led by Educational Services. Nine contracted, with Chemical and Pharmaceutical Products recording the steepest decline.Industrial activity contributed more to September performance, as the sector’s PMI climbed to 52.0 points from 50.6 points in August, marking its second consecutive month of expansion.The Industry Output Index rose to 53.2 points, while new orders and employment remained in expansion territory at 51.7 points and 51.1 points, respectively.
Raw material inventories returned to expansion, increasing to 51.1 points from 49.4 points in August. The sector’s Suppliers’ Delivery Time Index stood at 52.7 points, reflecting faster deliveries.Ten of the 16 industrial subsectors surveyed expanded, with Water Supply, Sewerage and Waste Management recording the strongest growth. The remaining six contracted, led by Chemical and Pharmaceutical Products.Services maintained a third consecutive month of expansion, although the sector’s PMI edged down to 53.2 points from 53.3 points in August.Nine of the 11 services subsectors recorded growth.
Educational Services led the expansion, while Professional, Scientific and Technical Services recorded the sharpest contraction. Agriculture also sustained its expansionary run, remaining above the 50-point threshold for the 26th consecutive month. Its PMI nevertheless eased to 53.1 points from 53.4 points in August.Four of the five agricultural subsectors expanded, with Livestock recording the strongest growth. Agricultural Support Services was the only subsector to contract.
The General Farming Activities Index stood at 54.6 points, while new orders, employment and inventories registered 54.4 points, 51.4 points and 52.1 points, respectively.Despite the continued expansion in activity, the report showed divergent price movements. The composite input price index rose by 0.8 points, while the output price index declined by 0.5 points.Input prices increased faster than output prices in both services and agriculture, suggesting continued pressure on operating margins even as demand and business activity remained in expansion territory.
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