Economic activity in Nigeria expanded for the second consecutive month in July 2026 as the Central Bank of Nigeria (CBN) Purchasing Managers' Index (PMI) rose to 51.1 points, although the industrial sector remained in contraction.

The CBN disclosed this in its latest PMI report, stating that the composite PMI edged up from the previous month to signal sustained improvement in overall business conditions.

According to the report, 20 of the 32 subsectors surveyed recorded growth, while the remaining 12 contracted.

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However, the Industry PMI fell to 49.6 points, indicating a decline in manufacturing and related activities. Eight of the 16 industrial subsectors surveyed recorded expansion, while the other eight contracted.

The Services PMI returned to growth at 51.1 points after three consecutive months of contraction. Eight of the 11 services subsectors expanded, while three recorded declines.

Agriculture remained the strongest-performing sector, with its PMI unchanged at 52.1 points, extending its expansion streak to 24 consecutive months. Four of the five agricultural subsectors posted growth, while crop production contracted.

The apex bank also reported easing inflationary pressures, with the composite input and output price indices declining to 1.6 points and 3.1 points, respectively, suggesting moderation in production costs and selling prices.

"The composite PMI inched up to 51.1 points in July 2026, signalling a second consecutive month of expansion in overall economic activity," the CBN stated.

It added: "Overall, the July 2026 PMI points to a recovery in overall economic activity, driven by sustained expansion in the Agriculture and Services sectors, which offset the contraction recorded in the Industry sector."