ABUJA — Nigeria's economy returned to expansion in June as the Purchasing Managers' Index rose above the 50-point threshold, according to the Central Bank of Nigeria. The PMI increased to 50.1 points from 49.6 in May, indicating a modest improvement in business activity. A PMI reading above 50 generally indicates expansion, while a reading below 50 signals contraction. The June improvement was supported largely by activity in the agricultural sector, although weakness remained in some other parts of the economy. The figures provided a positive signal after the previous month's contraction, but they also highlighted the uneven nature of Nigeria's economic recovery. The CBN's report was accompanied by its Household Expectations Survey, which showed that many Nigerians remained pessimistic about prevailing economic conditions despite having a more positive outlook for the medium term. The difference between business activity and household sentiment illustrates the difficulty of translating macroeconomic improvements into immediate improvements in living standards. For households, food prices, transportation costs, housing expenses and other essential expenditures remain major concerns. Economic growth does not automatically mean that families experience higher purchasing power, particularly when inflation continues to affect consumer prices. Agriculture's contribution to the June expansion is significant because the sector remains a major source of employment and income in Nigeria. Increased agricultural activity can support food supply and rural incomes, although farmers continue to face challenges including insecurity, inadequate infrastructure, high input costs and limited access to finance. Industry and services showed weaker conditions, demonstrating that growth remains uneven across sectors. Manufacturing businesses continue to face difficulties related to energy costs, foreign exchange, financing and logistics. Service providers also remain sensitive to household purchasing power because weaker consumer demand can reduce spending on discretionary goods and services. The PMI is closely watched because it provides an early indication of economic activity before some broader national statistics become available. It captures information from businesses about production, orders and other operating conditions. A sustained increase in the index would provide stronger evidence of a broad-based recovery, while a decline could signal renewed pressure. The Household Expectations Survey provides another perspective by measuring how consumers view current and future economic conditions. Household confidence can influence spending and investment decisions. When consumers are uncertain about their incomes or future expenses, they may postpone major purchases and increase savings where possible. This can affect businesses that depend on consumer demand. Nigeria's economic reforms have sought to improve fiscal stability, foreign exchange conditions and investor confidence. The government has argued that reforms such as the removal of the petrol subsidy and changes to the foreign exchange system are necessary to create conditions for long-term growth. However, the reforms have also produced significant short-term adjustments for households and businesses. Fuel costs and transportation expenses remain important drivers of economic pressure. The government has therefore faced the challenge of maintaining reform momentum while introducing measures intended to protect vulnerable households. Social programmes, infrastructure investment and employment initiatives can help reduce the impact of economic adjustment if they are effectively targeted. The June PMI result suggests that some sectors are beginning to recover, but policymakers will need to watch the data closely. A single month of expansion does not establish a long-term trend. Continued growth would require improvements across agriculture, manufacturing and services as well as stronger consumer confidence. For businesses, greater certainty in the foreign exchange market and improved infrastructure could support investment. Reliable electricity and transportation networks can reduce operating costs and improve productivity. Access to affordable financing is also important for companies seeking to expand production and create jobs. For households, the key measure of recovery will be whether incomes rise faster than the cost of living. Stronger employment opportunities and lower inflation would provide more tangible benefits than improvements in economic indicators alone. The CBN's June data therefore present a mixed picture. The return to expansion is encouraging, but household pessimism demonstrates that many Nigerians have yet to feel a substantial improvement in their daily economic circumstances. Sustaining growth while improving living standards will remain a major challenge for policymakers in the months ahead.