…As Composite PMI Stands At 52.3 Index Points In June
The Central Bank of Nigeria (CBN) has warned stakeholders in the nation’s economy about rising input costs across key sectors with the attendant implications for rising Consumer Price Index (CPI) in the months ahead, as businesses continue to contend with cost pressures.
The apex bank, in its just published June 2025 Purchasing Managers’ Index report, reported that the input price indices for the composite economy, the Industry, Services, and Agriculture sectors surpassed their respective output price indices during the month.
According to the CBN, the development represents mounting pressures on business margins, with most companies now absorbing costs instead of passing them on to consumers.
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Specifically, it clarified in the report that “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.”
An analysis of the report’s findings reflected that the agriculture sector recorded the highest cost absorption index at 9.8 points in June, indicating the widest gap between input and output prices while the Services sector recorded the lowest gap at 4.4 points.
But then, the report showed, all three major sectors, namely industry, services, and agriculture, recorded growth in business activity in June, with the composite PMI standing at 52.3 index points in the month, indicating sustained expansion in economic activity for the sixth consecutive month of the year.
The report further revealed that out of the 36 subsectors surveyed across the country, 25 recorded improved performance in the month under review.
On cross sectorial analysis, the Agriculture sector led with a PMI reading of 55.2 index points, the highest among the three segments and its eleventh consecutive month of expansion, driven primarily by a boost in farming activities. All five subsectors within the agriculture category recorded growth in the month.
The Industry sector followed with PMI of 51.4 index points, representing its sixth sustained growth, and the report showed that sector’s expansion was largely driven by increased production levels, with nine out of the 17 subsectors within the industrial segment recording growth.
Similarly, the Services sector posted a PMI of 51.3 points, with 11 of the 14 subsectors recording improved activity during the period, which the apex bank linked to increased business activity across the subsectors.
