Ghana: PMI edges down to seven-month low in June
The Ghana Purchasing Managers’ Index (PMI) ticked down to 50.5 points in June from 50.6 in May, the weakest reading since November 2018. As a result, the index remained just above the critical 50-point threshold that separates improvement from deterioration in Ghanaian business conditions where it has been for nine consecutive months.
June’s drop was largely explained by new orders rising at the slowest pace in eight months. Meanwhile, output and employment maintained a modest rate of expansion. On the price front, input prices increased at the softest pace in the survey’s history, while output prices eased for the third consecutive month, amid rising competition. Meanwhile, business sentiment fell to its lowest point in 31-months, although firm’s output prospects remained optimistic.
Commenting on the report, Andrew Harker, an associate director at IHS Markit, noted:
“The recent soft-patch in the Ghanaian private sector continued in June, with growth of new orders moderating. The data for the second quarter as a whole suggest that economic growth continued to soften.”