Ghana: PMI ticks down in October
December 6, 2021
The IHS Markit Purchasing Managers’ Index (PMI) came in at 51.0 in November, unchanged from the previous month’s result and remaining above the 50-threshold, signaling an improvement in business conditions from the previous month.
November’s stable reading came as an improvement in production was tempered by a sharp spike in price pressures. New orders and output both expanded at a swifter pace, which led firms to hire more workers in November. Meanwhile, input prices inflation increased markedly again on the back of rising fuel costs, prompting businesses to raise output charges. That said, optimism over the outlook for the coming 12-month period remained upbeat on expectations of improvements in customer demand.
Commenting on this month’s result, Andrew Harker, Economics Director at IHS Markit, said:
"Ghana's private sector continues to grow steadily as the year draws to a close, according to the latest PMI data. One highlight from the latest findings was a sharp jump in confidence as firms look forward to further growth over the year ahead. Price pressures continued to build though, in some cases limiting output growth. Higher fuel costs were mentioned in particular as having added to cost burdens."
Author: Jonuel Pérez, Junior Economist