Ghana: PMI jumps to a five-month high in February
The Stanbic IBTC Bank Ghana Purchasing Managers’ Index (PMI) rose notably in February, surging to a five-month high of 54.9 points, well above January’s 52.6 points. The print signaled better operating conditions in February, as the index moved further above the 50-point threshold separating improvement from deterioration in business conditions.
An overall improvement in business conditions came on the back of accelerated growth of output and new orders, and a further tightening of labor market conditions. Growth in new orders picked up a pace from the previous month in February, surging to a three-month high. In turn, supported by a robust increase in new orders, output expanded at the strongest pace since September 2017, marking the seventeenth consecutive month of growth in February.
Meanwhile, backlogs of work rose for the second consecutive month, and the rate of job creation hit a new high, as growing output requirements and anticipation of further increases in new work buttressed new hiring in February. Along with rising staff costs, purchase prices grew in February, with firms moving firmly to pass higher input prices to consumers, amid robust client demand.
Commenting on the economy’s prospects for next year, Ayomide Mejabi, Economist at Stanbic Bank, said:
“Going forward, the economy should continue benefitting from an improved operating environment, significant progress being made on fiscal consolidation as well as easier monetary conditions.”