Ghana: PMI increases to three-month high in February
March 3, 2021
The IHS Markit Ghana Purchasing Managers’ Index (PMI) rose from 51.2 in January to a three-month high of 52.5 in February. Thus, the index moved further above neutral 50-threshold that separates improving from deteriorating conditions in the private sector compared to the prior month.
February’s climb was largely driven by quicker growth of new orders and business activity amid gradually firming demand conditions. In the face of higher work requirements, firms continued to hire staff, with the rate of job growth reaching a one-year high. Turning to prices, purchase costs rose sharply in part due to material shortages and higher freight costs, which led firms to raise output charges again, although at a softer degree than in January. Lastly, although sentiment eased, businesses remained optimistic about higher activity ahead as restrictions get rolled back.
Author: Javier Colato, Economist