Ghana: PMI dips in March, remains in expansionary territory
April 7, 2021
The IHS Markit Ghana Purchasing Managers’ Index (PMI) fell to 51.8 in March from 52.5 in February. Thus, the index moved slightly closer to the neutral 50-threshold that separates improving from deteriorating conditions in the private sector compared to the prior month.
March’s lower reading was mainly driven by more moderate growth in business activity, which grew at a softer pace compared to February. However, an improvement in demand dynamics resulted in higher workloads, which led firms to increase their workforce at the fastest pace in just over a year, thus contributing to the continued improvement in overall conditions in March.
On the price front, purchase costs again rose sharply amid shortages of key goods, and higher freight charges and fuel costs, which led firms to increase output charges at a quicker pace than in February. Finally, sentiment rose to the highest in five months thanks to hopes that activity will return to pre-Covid levels in the coming year.