Ghana: PMI edges down in November but remains in expansionary territory
The IHS Markit Ghana Purchasing Managers’ Index (PMI) inched down to 52.5 in November from 53.1 in October. However, the index remained above the neutral 50-threshold that separates improving from deteriorating conditions in the private sector economy compared to the prior month.
The downtick midway through the final quarter of the year came on the back of a slightly softer increase in new orders, leading firms to onboard more staff and increase business activity. Moreover, backlogs of work continued to build albeit at a softer pace. Turning to prices, input costs rose partly on the back of greater staff costs, while raw material shortages also drove input prices up. Some firms linked greater input costs to currency weakness. Higher costs were partly passed on to clients, with output prices rising for the seventh month running. Lastly, business confidence remained stronger than the series average on hopes of an end to the pandemic and restrictive measures.
Andrew Harker, economics director at IHS Markit, commented:
“”The latest PMI data points to a sustained recovery in Ghana’s private sector, with the economy on course to end a difficult year in positive fashion. Hopes are also high heading into 2021 [but] one aspect potentially holding the recovery back at present is access to materials.”