Nigeria saw its economy move out of contraction during June, as the Central Bank of Nigeria (CBN) reported that the Purchasing Managers’ Index (PMI) climbed to 50.1 points, up from 49.6 points in May. This modest turnaround was primarily sustained by the agriculture sector, which continues to experience growth despite ongoing challenges within the industry and services sectors.
While the PMI reflects an improved landscape for corporate activity, the CBN’s Household Expectations Survey (HES) reveals a different reality for citizens. Nigerians remain largely pessimistic regarding the current economic climate, with many choosing to restrict their spending to essential items like food, electricity, and transportation. Consequently, households are opting to delay significant financial commitments, such as purchasing homes, vehicles, or making new investments.
A separate report from the apex bank highlights that business confidence among local firms has declined for the fourth month in a row. Although 19 out of 36 subsectors recorded growth, including all agricultural subsectors, the manufacturing and services industries finished the month in contraction territory. Despite these hurdles, there is a sense of hope regarding the medium-term outlook, with consumer confidence indices suggesting a more positive perception for the coming six months.
