Ghana: PMI continues decline in March
April 6, 2022
The S&P Global Purchasing Managers’ Index (PMI) came in at 47.2 in March, down from February's 49.6. March's result marked the weakest reading since May 2020. As such, the index fell further below the 50.0 no-change threshold, signaling a sharper deterioration in business conditions compared to the previous month.
March’s reading came amid weak demand, a fall in new orders and declining output. Global price pressures coupled with rising geopolitical uncertainty led to a faster rise in purchase costs, especially with regards to fuel, transportation, and raw materials costs, while rises in staff wages ended up pushing up firms’ selling charges as well. Nevertheless, firms continued to hire new workers in March, resulting in reduced backlogs in turn and signaling stronger demand in the coming months. Looking ahead, firms seemed less confident due to inflationary pressures, though they still remained upbeat regarding the 12-month outlook.