Ghana: Private-sector operating conditions deteriorate in June
The S&P Global Ghana Purchasing Managers’ Index (PMI) fell to 49.7 in June from 51.6 in May. As a result, the index fell below the 50.0 no-change threshold, and signaled a deterioration in private-sector operating conditions compared to the previous month.
June’s downturn was primarily driven by the first stagnation and decrease in new orders and business activity in four months, respectively. Businesses said that demand weakened in part due to the rapidest increase in output prices since November 2022, itself a result of the depreciation of the cedi against the U.S. dollar leading to the sharpest increase in purchase costs in 19 months. These higher costs, in turn, impacted firms’ operational decisions and led to a reduction in input buying for the first time in five months, as well as a decrease in stocks of purchases. More positively, employment modestly rose.
Finally, despite these challenges, business sentiment improved in June, with firms expressing optimism for the year ahead based on hopes for stable prices and exchange rates.