Ghana: PMI ticks up in March
April 3, 2019
The Stanbic IBTC Bank Ghana Purchasing Managers’ Index (PMI) ticked up from 51.3 points February to 51.5 in March. As a result, the index edged further above the critical 50-point threshold that separates improvement from deterioration in Ghanaian business conditions.
The reading reflected sustained new orders growth in March, amid signs of improving demand. In a similar fashion, output growth carried over into the surveyed month enabling yet another uptick in staffing levels. On the price front, a marked depreciation of the cedi against the U.S. dollar spurred inflationary pressures, with companies passing the burden of higher costs onto consumers through higher output prices. Furthermore, increasing inflation sent business confidence tumbling to a 28-month low in March, although sentiment among firms remained in positive territory.
Commenting on the report, Andrew Harker, an associate director at IHS Markit, noted:
“Ghana's private sector put together another solid month in March, reinforcing the view that GDP will have risen more than 1% on a quarterly basis at the start of 2019. There were some reports of supply chain issues, however, with difficulties securing materials contributing to delays in completing projects.”
Author: Almanas Stanapedis, Economist