Economy grows for 6th consecutive month

…Agriculture leads with strongest index

From Adanna Nnamani, Abuja

The Central Bank of Nigeria (CBN) has reported continued growth in the economy, with key sectors expanding for the sixth consecutive month despite mounting input costs.

According to the June 2025 Purchasing Managers’ Index (PMI) report released by the apex bank, businesses across the industry, services and agriculture sectors maintained strong momentum, recording increased activity during the month under review.

The composite PMI stood at 52.3 index points in June, reflecting sustained expansion in economic activity. Out of the 36 subsectors surveyed across the country, 25 posted growth, indicating widespread economic recovery and business confidence.

The agriculture sector led the charge with a PMI of 55.2 points, the highest among the three major sectors and its eleventh consecutive month of growth. The CBN attributed the impressive performance to increased farming activities, noting that all five subsectors under agriculture recorded expansion.

The industry sector posted a PMI of 51.4 points, driven largely by rising production levels. Nine of the 17 subsectors under the industrial category recorded growth. Similarly, the services sector maintained its upward trend with a PMI of 51.3 points, as 11 out of 14 subsectors reported increased business activity.

Despite the positive performance, the apex bank flagged rising input costs as a potential threat to price stability. It noted that the input price indices for the composite economy, as well as for industry, services and agriculture, exceeded their respective output price indices during the period.

“The increase in the gap between higher input costs and output price 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,” the report stated,” the report stated.

The agriculture sector recorded the highest cost absorption index at 9.8 points, signalling the widest gap between input and output prices. The services sector recorded the lowest at 4.4 points.

Nonetheless, the CBN said the resilience of businesses and their ability to absorb rising costs without immediately transferring them to consumers reflect growing optimism and stability in the economy.

With inflationary pressures looming, the bank hinted at the need for targeted policy measures to support businesses and sustain the growth momentum witnessed so far in 2025.