Nigeria's Private Sector Grows for Third Month in August

In August, Nigeria's private sector grew for the third consecutive month, as reported by the Central Bank of Nigeria's Purchasing Managers' Index (PMI), which increased to 52.7 points from 51.1 in July. The PMI indicates expansion when above 50.

The services sector recorded a PMI of 53.3, marking its second month of growth, with nine of the eleven subsectors surveyed showing expansion. The agriculture sector continued to perform consistently, achieving a PMI of 53.4, with all five subsectors expanding for 25 consecutive months.

The industrial sector, however, returned to expansion with a PMI of 50.6, following four months of contraction, but only five of the sixteen subsectors showed growth. Challenges such as high production costs and unstable power supply continue to hinder manufacturers.

The composite input price index decreased slightly, while the output price index rose, indicating that firms are passing on costs to consumers. A separate PMI survey by Stanbic IBTC and S&P Global also indicated improving conditions, with a reading of 54.3 in August.