Ghana PMI August 2022


Ghana: PMI records worst reading since April 2020 in August

September 5, 2022

The S&P Purchasing Managers’ Index (PMI) fell to 45.9 in August from July's 48.8. August's result marked the worst performance since April 2020. As a result, the index fell further below the 50.0 no-change threshold, signaling a sharper deterioration in business conditions in the private sector compared to the previous month. The reading represented the seventh consecutive monthly deterioration in business conditions.

August’s worsening of business conditions was driven by sharp declines in output and new orders. Record-high output prices—the result of rising costs for inputs such as staff and raw materials—chiefly led the severe deterioration in demand. In turn, the weakened demand affected employment as companies reduced their staffing levels for the second consecutive month. Meanwhile, business sentiment remained optimistic, but softened to below its long-term average due to concerns regarding the economy, plus higher inflation and interest rates.

Shreeya Patel, economist at S&P Global Market Intelligence, said:

“August PMI data for Ghana signalled another deterioration in business conditions […]. The largest threat to the Ghanaian economy is no doubt sharply rising prices which have remained high over the last year-and-a-half. Inflation hit 31.7% in July, with rates expected to remain elevated for at least the duration of the year.”

FocusEconomics panelists see fixed investment expanding 7.4% in 2022, which is down 1 percentage points from last month’s forecast, and 7.5% in 2023.


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Ghana PMI Chart

Ghana PMI August 2022

Note: Purchasing Managers’ Index. Readings above 50 indicate an overall increase compared to the previous month, and below 50 an overall decrease.
Source: S&P Global.

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