By Radarr Africa Business Desk
LAGOS, November 5 (Radarr Africa) – Nigeria’s private sector expanded for a fifth consecutive month in October, with the composite Purchasing Managers’ Index (PMI) rising to 53.2 from 53.0 in September, according to Central Bank of Nigeria (CBN) data reported by Nairametrics.
A reading above 50 points signals expansion. Nairametrics said the private sector “sustained its growth momentum in October 2026”, with 24 of the 32 subsectors monitored recording growth and eight contracting.
Within the composite index, output rose to 54.6 from 53.9, and employment climbed to 53.2 from 51.5. New orders eased to 52.8 from 53.7, while the raw materials stock index slipped to 51.9 from 52.1. Both trade-related gauges stayed below the 50-point mark: new export orders improved to 48.8 from 48.2, and new import orders rose to 49.0 from 47.9.
Agriculture was the strongest of the three sectors. Its PMI rose to 54.7 from 53.1, extending expansion to a 27th consecutive month. General farming activity rose to 56.8 from 54.6, new orders to 55.6 from 54.4, and employment to 52.9 from 51.4. All five agricultural subsectors grew, led by livestock at 56.4, followed by forestry at 55.3. Agricultural support services recorded the lowest reading, at 52.0.
Industry also strengthened. The industry PMI stood at 52.6, up from 52.0, marking a third straight month of expansion. Output rose to 53.5 from 53.2, new orders to 52.1 from 51.7, and employment to 52.7 from 51.1. Raw materials inventory increased to 51.8 from 51.1, while the supplier delivery times index eased to 52.6 from 52.7. Twelve of 16 industrial subsectors expanded and four contracted. Cement manufacturing posted the best reading at 60.2, while chemical and pharmaceutical products was weakest at 43.4.
Services was the only sector to lose some momentum, although it remained in expansion for a fourth straight month. The services PMI eased to 52.7 from 53.2. Business activity stood at 54.2, employment at 53.5, new orders at 51.7 and inventories at 51.1. Seven of 11 services subsectors grew and four contracted. Educational services recorded the highest reading, at 60.2, while arts, entertainment and recreation was lowest, at 47.1.
The survey also pointed to continued cost pressure. The composite input prices index rose to 64.0 from 63.3, and the composite output prices index rose to 58.9 from 58.4. In agriculture, input prices climbed to 68.3 from 65.8, while output prices rose to 61.1 from 58.5. In services, input prices rose to 62.8 from 62.0, but output prices fell to 58.4 from 59.3.
Nairametrics, which attributed the report to its research team, said the data were based on responses from 1,851 purchasing and supply executives across industry, services and agriculture.
The composite index rose by 0.2 points on September. The report also shows that the improvement in the employment index, which rose by 1.7 points, was the largest single gain among the composite components.
The index measures the direction of change, not the scale of activity, so a reading of 53.2 indicates that more firms reported growth than decline rather than quantifying how fast output is rising. Subsectors such as chemical and pharmaceutical products and arts, entertainment and recreation continued to report contraction in October.
The weakness of the export and import order indices, both still under 50, suggests that external trade remained a drag even as domestic activity strengthened, according to the figures reported.
