Ghana PMI November 2018


Ghana: PMI ticks up in November

December 5, 2018

The Stanbic IBTC Bank Ghana Purchasing Managers’ Index (PMI) rose from 50.2 points in October to 50.5 points in November. As a result, the index moved slightly further above the critical 50-point threshold that separates improvement from deterioration in Ghanaian business conditions.

November’s improvement came largely on the back of a rebound in output growth, which was due to an uptick in customer demand, following two consecutive months of contraction. Similarly, new business increased in November, although at a modest pace. Furthermore, backlogs of work continued to rise in the surveyed month, against the backdrop of sustained stock shortages. In turn, the rate of job creation remained positive, despite moderating to a two-year low.

Meanwhile, inflationary pressures continued to intensify in the surveyed month as input prices increased sharply, largely due to currency weakness and higher fuel prices. Firms passed higher input costs onto consumers through increased output prices, which rose at the fastest rate since March 2017. Lastly, business sentiment increased at the sharpest clip in seven months in November as firms’ expectations of economic conditions improved.

Commenting on the report, Andrew Harker, an associate director at IHS Markit, noted:

“The Ghanaian economy continues to recover modestly from September's deterioration, seeing a return to growth of business activity in November. This suggests that GDP will remain in positive territory during the final quarter of the year.”

FocusEconomics Consensus Forecast panelists expect fixed investment to expand 5.7% in 2019, which is up 1.4 percentage points from last month’s forecast. In 2020, fixed investment is seen rising 6.4%.

Author:, Research Team Manager

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