A new sectoral review report shows improvement across industries and broader economic activities, with trade recording the strongest rebound.
Manufacturing with 106.2 points, non-manufacturing (116.2), trade (114.1) and services (103.7) advanced in August compared to July 2025. On the other hand, agriculture slipped into contraction territory, recording 95.6 index points.
These are contained in the latest NESG-Stanbic IBTC Business Confidence Monitor (BCM) titled, ‘Mixed Signals: Strong Sectoral Growth Versus Structural Hurdles’.
According to the report, the current business performance index rose to 107.3 points in August, representing a 1.9-point increase from its July 2025 level.
It noted that the recovery was driven by stronger performance in technology, finance, manufacturing, energy and logistics, supported by targeted investments and ongoing reforms.
However, the gains were tempered by structural bottlenecks affecting operational efficiency and business profitability, it further noted.
The decline in the agriculture sector was mainly driven by contractions in crop production and forestry sub-sectors.
The sector’s contraction, the report noted, is linked to multiple factors, including climate variability caused by delayed rainfall and shorter wet seasons, insecurity and disruptions to crop planting that extended into August 2025.
A breakdown of performance across the five agricultural sub-sectors revealed that Crop Production and Forestry slipped into contraction, while Livestock and Fishing recovered from the weakness observed in July 2025.
The three expanding sub-sectors – livestock, fishing and agro-allied – recorded slight performance improvements compared to July 2025, the report noted.
The report noted that key sub-indices of the BCM, including investment, exports, access to credit and prices, registered lower values relative to July 2025.
The cost of doing business also rose in August, reversing the marginal relief of the previous month. Also, input prices continued to worsen during the period.
Major constraints restricting growth and performance in August 2025 were limited financing access, unclear economic policies, unreliable electricity supply, high lease and rental costs and persistent insecurity, it stated.
In agriculture, the report identified challenges such as rising costs of poultry feed, fertilizers and other critical inputs, which have made operations more difficult.
“Rising production costs and declining consumer purchasing power are eroding margins. Price instability and volatile demand add further uncertainty. Consequently, many agribusinesses struggle to reinvest or expand operations, resulting in stagnation and, in some cases, outright closure,” the report noted.
