All five component indices remained above the 50-point threshold, reflecting improvements in production, new orders, employment, raw materials inventory and suppliers’ delivery time.
Nigeria’s private sector sustained its expansion in October 2026, with the Purchasing Managers’ Index (PMI) rising marginally to 53.2 points from 53.0 points in September, according to the latest data released by the Central Bank of Nigeria (CBN).
The latest reading marks the fifth consecutive month of expansion in business activity, supported by stronger performances in Agriculture and Industry, despite a slight slowdown in Services.
All three major sectors remained above the 50-point threshold that separates expansion from contraction, indicating continued growth across the economy.
Composite PMI: Key indicators
The composite output index increased to 54.6 points in October from 53.9 points in September, reflecting stronger business output. The employment index also rose to 53.2 points from 51.5 points.
However, the new orders index moderated to 52.8 points from 53.7 points, while the stock of raw materials index edged down to 51.9 points from 52.1 points. Both remained in expansion territory.
External trade indicators showed some improvement, although they remained below the growth threshold. New export orders rose to 48.8 points from 48.2 points, while new import orders increased to 49.0 points from 47.9 points.
Under the CBN’s methodology, readings above 50 points indicate expansion, those below 50 signal contraction, while exactly 50 points represents no change.
Industry PMI rises for third consecutive month
The Industry PMI increased to 52.6 points in October from 52.0 points in September, extending the sector’s expansion to a third consecutive month.
All five component indices remained above the 50-point threshold, reflecting improvements in production, new orders, employment, raw materials inventory and suppliers’ delivery time.
The industry output index rose to 53.5 points from 53.2 points, while new orders increased to 52.1 points from 51.7 points. Employment also improved to 52.7 points from 51.1 points, while raw materials inventory climbed to 51.8 points from 51.1 points.
Suppliers’ delivery time stood at 52.6 points, compared with 52.7 points in September.
Of the 16 industrial subsectors surveyed, 12 recorded expansion while four contracted. Cement manufacturing led the sector with a PMI of 60.2 points, while Chemical and Pharmaceutical Products recorded the weakest performance at 43.4 points.
Agriculture records strongest sectoral growth
Agriculture was the best-performing of the three major sectors, with its PMI rising to 54.7 points in October from 53.1 points in September. The sector has now sustained expansion for 27 consecutive months, with all five subsectors recording growth during the review period.
The general farming activities index increased to 56.8 points from 54.6 points, while new orders rose to 55.6 points from 54.4 points.
Employment improved to 52.9 points from 51.4 points, and raw materials inventory climbed to 53.6 points from 52.1 points.
Among the subsectors, Livestock recorded the highest PMI at 56.4 points, followed by Forestry at 55.3 points. Agricultural Support Services had the lowest reading at 52.0 points, although it also remained in expansion territory.
Services growth moderates
The Services PMI declined slightly to 52.7 points in October from 53.2 points in September, marking the sector’s fourth consecutive month of expansion.
Despite the moderation, all four major indicators remained above 50 points. Business activity stood at 54.2 points, employment at 53.5 points, new orders at 51.7 points and inventories at 51.1 points.
Seven of the 11 services subsectors recorded expansion, while four contracted. Educational Services led with a PMI of 60.2 points, whereas Arts, Entertainment and Recreation recorded the weakest performance at 47.1 points.
Prices and broader sectoral performance
The October survey also recorded increases in the composite input and output price indices, suggesting that businesses continued to face rising cost and selling-price pressures.
The composite input price index rose to 64.0 points from 63.3 points in September, while the output price index increased to 58.9 points from 58.4 points.
Agriculture recorded the sharpest increases among the reported sectoral price indicators. Its input price index climbed to 68.3 points from 65.8 points, while the output price index rose to 61.1 points from 58.5 points.
In Services, the input price index increased to 62.8 points from 62.0 points, but the output price index declined to 58.4 points from 59.3 points.
Overall, 24 of the 32 subsectors monitored by the CBN recorded expansion in October, while eight contracted, highlighting the broad reach of the improvement in business activity.
The October PMI survey was based on responses from 1,851 purchasing and supply executives across the Agriculture, Industry and Services sectors.
The findings point to sustained growth in Nigeria’s private sector, with Agriculture and Industry providing the strongest momentum. However, the moderation in Services, alongside rising input and output prices, suggests that businesses continue to contend with cost pressures even as operating conditions improve.
