Ghana: Manufacturing PMI jumps to over one-year high in November
December 4, 2019
The Ghana Purchasing Managers’ Index (PMI) rose to 52.4 in November, from 50.1 in October, marking the best result in 14 months. As a result, the index moved further above the critical 50-threshold that separates improvement from deterioration in Ghanaian business conditions, where it has been for 14 consecutive months.
November’s upturn was largely driven by a rebound in new business which rose at the strongest pace so far this year, amid solid consumer demand. In turn, output growth accelerated to an 18-month high in November, with backlogs of work continuing to increase and employment rising at the strongest pace in ten months. On the price front, input price inflation remained elevated amid currency weakness, while output prices rose accordingly. Lastly, business sentiment remained broadly stable and was positive in November.
Andrew Harker, Associate Director at IHS Markit, noted:
" Last month we surmised that the fall in new orders may have just been a weather-related blip and this does appear to have been the case as a solid rebound in new business was recorded in November. The expansion in new work breathed life through the private sector […] providing optimism that the Ghanaian economy can finish 2019 on a positive note."
Author: Almanas Stanapedis, Economist