Ghana PMI July 2018


Ghana: PMI dips further in July

August 3, 2018

The Stanbic IBTC Bank Ghana Purchasing Managers’ Index (PMI) fell from 52.7 points in June to 51.8 points in July, marking the lowest reading since September 2016. Nevertheless, the index remained above the 50-point threshold that distinguishes improvement from deterioration in the Ghanaian business environment.

The deterioration in the PMI was underpinned by cooling output expansion and lower growth in new orders, with both falling to a 22-month low in July. Nevertheless, job creation accelerated in July as firms sought to clear the accumulated backlogs of work. Meanwhile, the weakness of the Ghanaian cedi against the U.S. dollar drove up input costs, which were partly passed on to consumers through higher output prices.

Commenting on the report, Phumelele Mbiyo, head of Africa research at Stanbic Bank, noted:

“The private sector still showed growth for the 30th consecutive month. Nonetheless, the decline in the PMI in July signifies a loss of momentum in growth of the private sector [..] Indications are that the slowdown in the pace of growth in private sector in July may be transitory. After all, the backlog of work increased in July.”

FocusEconomics Consensus Forecast panelists expect fixed investment to expand 10.3% in 2018, which is up 1.8 percentage points from last month’s estimate, and 7.7% in 2019.

Author:, Research Team Manager

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