Nigeria’s private sector sustained its progress 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 providers sector progress.
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 progress throughout the financial system.
What the information is saying
A better evaluation of the report’s part 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 in the course of 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 beneath 50 factors.
The CBN defined {that a} PMI studying above 50 factors signifies growth in enterprise actions, whereas a studying beneath 50 factors alerts contraction.
An index of precisely 50 factors represents no change. On this foundation, the October figures point out that general enterprise exercise remained in growth, whilst 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 part 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 in the course of the overview interval.
- The business output index rose to 53.5 points from 53.2 points 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 business subsectors surveyed recorded growth, whereas 4 contracted.
Cement manufacturing emerged because the best-performing industrial subsector with a PMI at 60.2 factors, highlighting strong exercise in the development and infrastructure ecosystem.
On the flip facet, 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 step by step regaining momentum after experiencing weaker circumstances earlier in the 12 months.
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 progress in the course of the overview 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 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 progress moderates
While the providers sector remained in progress 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 progress 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 constructive at 51.1 factors.
Seven of the eleven providers subsectors expanded in the course of the month whereas 4 contracted.
Educational Services recorded the best PMI studying at 60.2 factors, making it one of many strongest-performing subsectors throughout the complete financial system.
Arts, Entertainment and Recreation was the weakest providers subsector with a PMI of 47.1 factors.
The moderation in providers progress suggests companies stay cautiously optimistic, though slower order inflows and stock accumulation point out some decline in demand circumstances 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 circumstances and sooner deliveries.
The report revealed that 24 of the 32 subsectors monitored recorded progress throughout October, underscoring the widespread nature of the continuing growth as solely eight subsectors contracted.
The October PMI report highlighted a rise in the composite enter and output worth indices, indicating that companies continued to report adjustments in the costs of supplies and items in the course of the month.
- The composite enter worth index rose by 0.7 factors to 64.0 factors in October from 63.3 factors in September.
- Output worth index elevated by 0.5 factors to 58.9 factors from 58.4 factors.
- In Services, the enter worth index elevated to 62.8 factors from 62.0 factors, whereas the output worth index declined to 58.4 factors from 59.3 factors.
- Agriculture recorded will increase in each measures, with its enter worth index rising to 68.3 factors from 65.8 factors and its output worth 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 get well, overlaying 1,851 responses from buying and provide executives throughout Industry, Services and Agriculture. Compared to the previous month’s report, the survey covers 1,900 respondents (Companies Purchasing and Supply Executives).
The report’s findings level to continued growth in general enterprise exercise, led by stronger efficiency in Agriculture and Industry, whereas Services recorded a slower tempo of progress. At the identical time, the rise in the composite enter and output worth indices remained a notable characteristic of the October enterprise survey.
