By Elizabeth Adegbesan
Economic activities expanded for the second consecutive month to 51.4 index points in February 2025.
The Central Bank of Nigeria, CBN, disclosed this today in its Purchasing Managers Index , PMI, Report for February 2025.
CBN noted that the industry, services and agriculture sectors recorded expansion with 50.5 index points, 51.1 index points and 53.1 index points respectively during the review period.
CBN added: “A further breakdown of the 36 sub sectors reviewed across the Industry, Services and Agriculture sectors showed that 21 sub sectors reported growth in economic activities with Cement reporting the highest growth during the review month.
“13 sub-sectors registered decline in
economic activities with Nonmetallic Mineral Products reporting the highest decline.
“Two Plastics & Rubber Products & Accommodation & Food Services sub-sectors were stationary.”
Meanwhile, the apex bank’s Business Expectation Survey Report released today showed that businesses expressed optimism about the macroeconomy in February.
According to CBN, this might be attributed to their positive outlook on exchange rate.
The report also showed that respondent firms expect the Naira to appreciate this month and in the next six months and projected a rise in borrowing cost during the periods.
CBN said: “The overall confidence index (CI) on the macroeconomy indicated that businesses were optimistic in February 2025.
“All the sectors expressed optimism in February 2025, with the Industry Sector recording the highest optimism
“The Mining & Quarrying; Electricity, Gas & Water Supply Sector indicated the highest expansion plan for March 2025.
They highlighted high interest rate (75 index points), insecurity (73.9 index points), insufficient power supply (73.8 index points), high taxes (73 index points), financial problems (68.5 index points) and high bank charges (67.6 index points) as top business constraints during the review periods.
However, the apex bank’s Consumer Expectation Survey report released today showed that households expressed pessimism about the macroeconomy in February with their outlook at -19 index points compared to -23 index points in January.
They felt that prices for household items are currently elevated.
CBN said, “The general Consumer Outlook shows a reduction in pessimism for February 2025 compared to the previous month.
“This shift is linked to consumers’ perceptions regarding their family income, economic condition, and family financial situation.
“In general, survey participants feel that prices for household items, including durable and non-durable goods, are currently elevated.”
The report showed that households anticipated that the price of house, rent, telecommunication, car/vehicle, and electricity would increase this month and next six months.
But in the upcoming three and six months, consumer optimism about the overall economy is expected to gradually increase.
The report also revealed that households currently do not intend to spend substantial part of their income on purchasing houses, cars or vehicles and they expect to allocate their income on food and other household items across all periods.
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