Ghana: PMI edges up in September
October 3, 2019
The Ghana Purchasing Managers’ Index (PMI) ticked up to 51.4 from August’s 50.7. As a result, the index rose further above the critical 50-threshold that separates improvement from deterioration in Ghanaian business conditions, where it has been for 12 consecutive months.
September’s improvement reflected the fastest rate of output growth in eight months, while new orders reported the quickest increase since April. The rate of job creation, meanwhile, remained broadly in line with that of last months, and backlogs of work continue to accumulate. On the price front, input price inflation accelerated and drove output costs higher. The 12-month business outlook dipped from a month prior, although remained positive.
Andrew Harker, Associate Director at IHS Markit, noted:
"The latest PMI data contain some signs of encouragement, with both output and new orders rising at sharper rates. […] Nevertheless, current rates of expansion remain relatively muted, with PMI data across the third quarter as a whole suggesting a quarterly rise in GDP of between 1% and 1.5%."
Author: Nicolás J. Aguilar, Economist