Nigeria’s private sector sustained its development momentum in October 2026, with the nation’s Purchasing Managers’ Index (PMI) rising marginally to 53.2 factors from 53.0 factors recorded in September.
The newest studying alerts a fifth consecutive month of growth in financial exercise, pushed by stronger performances in the agriculture and industrial sectors regardless of a slight moderation in companies sector development.
Data launched by the Central Bank of Nigeria (CBN) confirmed that every one three main sectors of the financial system remained above the 50-point benchmark that separates growth from contraction, indicating broad-based development throughout the financial system.
What the info is saying
A better evaluation of the report’s element indices additionally confirmed enhancements in some key areas of enterprise exercise, though new orders and inventories recorded slight declines in contrast with September.
- The composite output index rose to 54.6 factors in October from 53.9 factors in September, indicating an enchancment in reported output exercise through the month.
- The employment index elevated to 53.2 factors from 51.5 factors, whereas the brand new orders index eased to 52.8 factors from 53.7 factors.
- The inventory of uncooked supplies index slipped to 51.9 factors from 52.1 factors however remained above the 50-point growth threshold.
- The new export orders index improved from 48.2 to 48.8 factors, whereas new import orders rose from 47.9 to 49.0 factors, though each remained under 50 factors.
The CBN defined {that a} PMI studying above 50 factors signifies growth in enterprise actions, whereas a studying under 50 factors alerts contraction.
An index of precisely 50 factors represents no change. On this foundation, the October figures point out that total enterprise exercise remained in growth, at the same time as some particular person indicators continued to present weak spot.
Industry PMI rises for third consecutive month
The Industry PMI elevated to 52.6 factors in October from 52.0 factors in September, marking the sector’s third consecutive month of growth.
- The report confirmed that every one 5 element indices used to assess industrial exercise remained above the 50-point threshold, pointing to continued enchancment throughout the measured areas.
- The efficiency additionally mirrored positive aspects in manufacturing, new orders, employment, and uncooked supplies stock through the evaluate interval.
- The trade output index rose to 53.5 factors from 53.2 factors in September, whereas the brand new orders index elevated to 52.1 factors from 51.7 factors.
- The employment index improved to 52.7 factors from 51.1 factors, whereas the uncooked supplies stock index climbed to 51.8 factors from 51.1 factors.
Suppliers’ supply time stood at 52.6 factors, in contrast with 52.7 factors in the previous month.
Notably, twelve of the 16 trade subsectors surveyed recorded growth, whereas 4 contracted.
Cement manufacturing emerged because the best-performing industrial subsector with a PMI at 60.2 factors, highlighting sturdy exercise in the development and infrastructure ecosystem.
On the flip aspect, Chemical and Pharmaceutical Products recorded the weakest efficiency in the sector with a PMI studying of 43.4 factors, remaining firmly in contraction area.
The rise in industrial exercise additional reinforces indicators that manufacturing and manufacturing actions are steadily regaining momentum after experiencing weaker situations earlier in the yr.
Agriculture leads growth
The agriculture sector emerged because the strongest-performing phase of the financial system among the many three sectors in October, posting a PMI studying of 54.7 factors, up from 53.1 factors in September.
- The sector maintained its growth for the twenty-seventh consecutive month, with all 5 agriculture subsectors recording development through the evaluate interval.
- The enchancment was mirrored in the sector’s normal farming actions, new orders, employment and uncooked supplies stock indices, which all remained above 50 factors.
- The normal farming actions index elevated to 56.8 factors from 54.6 factors in September, whereas the brand new orders index rose to 55.6 factors from 54.4 factors.
The employment index improved to 52.9 factors from 51.4 factors, whereas the uncooked supplies stock index climbed to 53.6 factors from 52.1 factors.
Livestock recorded the very best PMI amongst agriculture subsectors at 56.4 factors, adopted by Forestry at 55.3 factors, whereas Agricultural Support Services recorded the bottom studying at 52.0 factors.
Services development moderates
While the companies sector remained in development territory, momentum slowed barely in October.
- The Services PMI eased to 52.7 factors from 53.2 factors in September, though the sector remained in growth for the fourth consecutive month.
- However, the sector continued to profit from development in output, new orders, employment, and inventories as all of them stayed above 50 factors.
- Business exercise expanded to 54.2 factors, employment rose to 53.5 factors, new orders stood at 51.7 factors, and inventories remained optimistic at 51.1 factors.
Seven of the eleven companies subsectors expanded through the month whereas 4 contracted.
Educational Services recorded the very best PMI studying at 60.2 factors, making it one of many strongest-performing subsectors throughout all the financial system.
Arts, Entertainment and Recreation was the weakest companies subsector with a PMI of 47.1 factors.
The moderation in companies development suggests companies stay cautiously optimistic, though slower order inflows and stock accumulation point out some decline in demand situations relative to the earlier month.
More perception
A breakdown of the composite PMI elements highlights the broad-based nature of the growth.
- The composite output index rose to 54.6 factors in October, indicating stronger manufacturing ranges throughout the financial system.
- Employment improved considerably to 53.2 factors from 51.5 factors in September, reflecting elevated hiring exercise by companies.
- New orders, a key indicator of future enterprise exercise, remained wholesome at 52.8 factors.
- Meanwhile, the inventory of uncooked supplies index moderated barely to 51.9 factors however remained above the expansion threshold, whereas provider supply time stood at 52.6 factors, suggesting improved provide chain situations and quicker deliveries.
The report revealed that 24 of the 32 subsectors monitored recorded development throughout October, underscoring the widespread nature of the continued growth as solely eight subsectors contracted.
The October PMI report highlighted a rise in the composite enter and output value indices, indicating that companies continued to report adjustments in the costs of supplies and items through the month.
- The composite enter value index rose by 0.7 factors to 64.0 factors in October from 63.3 factors in September.
- Output value index elevated by 0.5 factors to 58.9 factors from 58.4 factors.
- In Services, the enter value index elevated to 62.8 factors from 62.0 factors, whereas the output value index declined to 58.4 factors from 59.3 factors.
- Agriculture recorded will increase in each measures, with its enter value index rising to 68.3 factors from 65.8 factors and its output value index growing to 61.1 factors from 58.5 factors.
The October PMI report factors to a Nigerian financial system that’s persevering with to recuperate, protecting 1,851 responses from buying and provide executives throughout Industry, Services and Agriculture. Compared to the earlier month’s report, the survey covers 1,900 respondents (Companies Purchasing and Supply Executives).
The report’s findings level to continued growth in total enterprise exercise, led by stronger efficiency in Agriculture and Industry, whereas Services recorded a slower tempo of development. At the identical time, the rise in the composite enter and output value indices remained a notable function of the October enterprise survey.
