Ghana: PMI drops in May; business conditions still improve
June 3, 2021
The IHS Markit Ghana Purchasing Managers’ Index (PMI) dropped to a four-month low of 51.5 in May from April’s 52.4. Consequently, the index remained above the neutral 50-threshold indicating a mild improvement in business conditions in the private sector over the previous month.
May’s slowdown was due to new orders increasing at the softest rate in four months, likely due to a sharp increase in prices. Meanwhile, output expanded solidly in May due to improving consumer demand, prompting businesses to increase staff levels, with the pace of job creation reaching a 15-month high.
On the price front, the growth of output prices accelerated for the third consecutive month in May, reflecting the sharp increase of purchasing prices due to higher costs for raw materials linked to supply shortages. Lastly, firms remained optimistic over the outlook for output in the coming 12-month period.
Author: Marta Casanovas , Junior Economist