Manufacturing Gains Momentum Globally, as Nigeria’s PMI Hits 13Month High

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• While Business sentiment dipped

BY BONNY AMADI

In the week ended Friday March 07, 2025, the global and domestic Purchasing Managers Index (PMI) data, highlighted the ongoing recovery in the global manufacturing sector and the strengthening momentum in Nigeria’s private sector.

For instance, in February 2025, the global manufacturing sector extended its recovery for the second consecutive month, with the Global Manufacturing PMI rising to 50.6 from 50.1 in January. While this signals an improvement in operating conditions, growth remains moderate compared to historical trends.

The expansion was primarily driven by a sharp rebound in the United States, where production saw its steepest monthly increase since May 2022. This marked a significant turnaround after five months of decline at the end of last year.

However, on the domestic front, Nigeria’s private sector witnessed a notable acceleration in growth in February 2025, supported by increased output, rising new orders, and a boost in purchasing activity.

This improvement was fuelled by stronger demand, while inflationary pressures, though still elevated showed signs of easing.

Meanwhile, on the global scene, among the 33 economies tracked by the S&P Global PMI survey, only India posted stronger growth than the US in February.

However, performance varied across regions. The Eurozone continued to struggle, recording its 23^rd consecutive month of manufacturing contraction. In contrast, Asia experienced its strongest output growth in six months, with resilient manufacturing activity supporting the region’s economic outlook.

New factory orders worldwide rose at their fastest pace since March 2022, driven by strengthening domestic demand. While global export orders declined slightly, the drop was the smallest in nine months, signalling a potential stabilization in global trade.

Rising input costs, particularly in North America, added to inflationary pressures, though selling prices remained stable in the eurozone and China.

On the domestic front, Nigeria’s private sector witnessed a notable acceleration in growth in February 2025, supported by increased output, rising new orders, and a boost in purchasing activity. This improvement was fuelled by stronger demand, while inflationary pressures—though still elevated—showed signs of easing.

The headline Purchasing Managers’ Index (PMI) climbed to 53.7 from 52.0 in January, marking the strongest expansion since January 2024 and the third consecutive month of growth.

This reflects improving business confidence and a sustained economic recovery. Output levels grew for the third straight month, with February’s expansion being the fastest in over a year.