Ghana PMI December 2018


Ghana: PMI jumps in December

January 4, 2019

The Stanbic IBTC Bank Ghana Purchasing Managers’ Index (PMI) rose from 50.5 points in November to a six-month high of 52.3 points in December. As a result, the index moved further above the critical 50-point threshold that separates improvement from deterioration in Ghanaian business conditions.

December’s reading reflected an acceleration in new orders growth, which rose at the fastest pace since June amid improving demand dynamics in the Ghanaian private sector. Strengthening demand outpaced output growth in December, reflected in rising backlogs of work which increased at the joint-fastest pace in the survey history. On a less positive note, the rate of job

creation remained close to November’s two-year low in the surveyed month, reportedly due to lack of available funds for additional hiring.

Meanwhile, inflationary pressures retreated slightly at the end of 2018, although remained elevated due to higher fuel costs, sustained currency weakness and import duties. Lower input price inflation was reflected in moderate output price inflation as companies offered discounts to attract customers. Lastly, business sentiment was strong and remained broadly stable in the surveyed month.

Commenting on the report, Andrew Harker, an associate director at IHS Markit, noted:

“There were further signs of encouragement for the Ghanaian economy in December as the recovery in demand gathered pace. The economy therefore carries some momentum through to the start of 2019.”

FocusEconomics Consensus Forecast panelists expect fixed investment to expand 6.3% in 2019, which is down 1.4 percentage points from last month’s forecast. In 2020, fixed investment is seen rising 5.3%.

Author:, Research Team Manager

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