Ghana: PMI falls in October amid adverse weather conditions
November 5, 2019
The Ghana Purchasing Managers’ Index (PMI) fell to 50.1 in October from 51.4 in September. As a result, the index landed marginally above the critical 50-threshold that separates improvement from deterioration in Ghanaian business conditions, where it has been for 13 consecutive months.
In October, business conditions were rocked by the first contraction in new orders in 13 months, with a slowdown in output growth weighing further on the overall print. Heavy rainfall was largely to blame according to most panelists. Nevertheless, backlogs of work rose for the 16-consecutive month, prompting firms to expand their workforce numbers. On the price front, input price inflation accelerated to a five-month high, with output prices rising accordingly. All said, the 12-month business outlook eased in October.
Andrew Harker, Associate Director at IHS Markit, noted:
"October proved to be a challenging month for Ghana's private sector, with output growth waning amid a fall in new orders. The extreme rainfall seen during the month clearly had a detrimental impact on operations, so firms will be hoping that the weather in November proves more conducive to growth and the fall in new orders in October will just have been a blip.”
Author: Nicolás J. Aguilar, Economist