Ghana: Private sector shows stronger growth in April despite challenges
The S&P Global Ghana Purchasing Managers’ Index (PMI) rose to 51.3 in April from 50.9 in March. As a result, the index moved further above the 50.0 no-change threshold, and signaled a faster improvement in private sector operating conditions compared to the previous month.
April’s increase was primarily driven by improved customer demand, which led to a quicker increase in volumes of new orders. Consequently, output posted the sharpest rise since August of the previous year. That said, employment increased at the softest pace in the current three-month sequence of growing employment.
Inflationary pressures intensified, with the rate of overall input cost inflation accelerating for the third consecutive month and hitting an over year high. The pickup was due to sharper increases in both purchase prices and staff costs, mainly attributed to the depreciation of the cedi against the U.S. dollar and higher fuel prices. Consequently, companies increased their selling prices at the fastest pace in 16 months. Lastly, business sentiment improved to the highest this year, buoyed by expectations of a more stable currency.