A boat on the beach in Ghana

Ghana PMI August 2021

Ghana: PMI records worst reading in over a year in August

The IHS Markit Purchasing Managers’ Index (PMI) came in at 49.7 in July, down from June’s 51.0 and marking the worst reading in over a year. As such, the index dropped below the 50-threshold, signaling a deterioration in business conditions from the previous month.

August’s downturn came as stricter pandemic-related restrictions, unfavorable weather conditions and, notably, rising price pressures all had a detrimental impact on new orders and output. This led businesses to lower their headcount for the second consecutive month. Meanwhile, higher input prices due to lack of materials, higher costs for transport and a weak currency led firms to raise output charges. That said, optimism over the outlook for the coming 12-month period held steady as expectations of improving demand gave reason for hope.

Commenting on July’s result, Andrew Harker, Economics Director at IHS Markit, noted:

“The PMI data show that the Ghanaian private sector is going through a soft-patch at present as demand is restricted by inflationary pressures in the economy. There are some reasons to believe, however, that growth can resume soon. Companies remained confident that their output will rise over the coming year, and some were even sufficiently encouraged to expand their inventory holdings in order to prepare for coming improvements in demand.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest