Ghana: PMI soars to a seven-month high in March
April 5, 2018
The Stanbic IBTC Bank Ghana Purchasing Managers’ Index (PMI) inched up in March, increasing to a seven-month high of 55.2 points, from 54.9 points in February. The reading signaled yet another improvement in operating conditions, and the index moved further above the 50-point threshold that separates improvement from deterioration in business conditions.
Robust new orders growth and faster output expansion laid the ground for an overall improvement in business conditions. Output increased on the back of notable new business growth, resulting in reduced backlogs of work. Consumers’ greater willingness to buy high-quality products and services led new orders growth to reach a six-month high in March.
Against the backdrop of increasing output, the rate of job creation remained elevated, extending the sequence of net job creation to 19 consecutive months. Although new orders growth led to a sharp increase in purchasing activity among Ghanaian firms, both input prices and staff costs rose at slower rates in March compared to the previous month.
Commenting on the economy’s prospects, Ayomide Mejabi, Economist at Stanbic Bank, said:
“The Stanbic Bank Ghana PMI continues to signal robust business activity amid a more stable macroeconomic environment, as the exchange rate remains supported by a declining current account deficit, and as the declining fiscal deficit and disinflation process prove positive for both business and consumer confidence.”
Ghana Fixed Investment Forecast
FocusEconomics Consensus Forecast panelists expect fixed investment to expand 7.7% in 2018, which is down 0.8 percentage points from last month’s estimate, and 7.0% in 2019.
Author: Almanas Stanapedis, Research Team Manager