Ghana: PMI eases in April
The Stanbic IBTC Bank Ghana Purchasing Managers’ Index (PMI) moderated in April to 54.5 points, down from March’s six-month high of 55.2 points. Despite easing, the reading pointed to yet another improvement in operating conditions, as it remained comfortably above the 50-point threshold that separates improvement from deterioration in private sector business conditions.
Solid new orders growth again drove the headline index in April, forming the basis for an overall improvement in business conditions. Given the backdrop of buoyant demand, which was fueled by the introduction of new products and successful marketing campaigns, backlogs of work surged at the highest rate in the survey’s history. In turn, firms continued hiring more staff in April, which marked the 20th consecutive month of net job creation in the private sector. Meanwhile, despite higher input costs, output prices remained stable in April, ending a nine-month run of rising prices as inflation came in at a record low.
Commenting on the report, Ayomide Mejabi, Economist at Stanbic Bank, noted:
“While many businesses received a strong level of new orders, the rate of growth slowed slightly in April as business activity normalized to more sustainable levels. Interestingly, the output price index showed that the disinflation process already underway in Ghana should continue as food inflation and exchange rate volatility remains benign.”