Ghana: PMI rises to one-and-a-half year high in December
January 6, 2020
The Ghana Purchasing Managers’ Index (PMI) ticked up to 52.7 in December, from 52.4 in November and marking a 18-month high. In turn, the index rose further above the critical 50-threshold that separates improvement from deterioration in Ghanaian business conditions, where it has been for 15 consecutive months.
December’s improvement was largely driven by marked increased in business activity, as new orders rose at the fastest pace in a year. Backlogs of work increased notably as a result of higher demand, prompting firms to expand their workforce. On the price front, input prices rose markedly in December amid currency weakness, while output prices increased only modestly. business sentiment was the strongest since January.
Andrew Harker, Associate Director at IHS Markit, noted:
"Ghana's private sector saved the best till last in terms of performance during 2019, seeing solid new order growth and a marked expansion of business activity. This helped support a strong pick-up in confidence, with firms more optimistic regarding the future than at any time since the opening month of the year. Should these trends continue, 2020 could see an improvement on the generally muted growth seen across 2019."
Author: Nicolás J. Aguilar, Economist