Ghana: PMI rises in July
The S&P Global Ghana Purchasing Managers’ Index (PMI) improved to 50.1 in July from 49.7 in June. As a result, the index moved above the 50.0 no-change threshold, signaling an improvement in private sector operating conditions compared to the previous month.
July’s upturn was due to new business inflows returning to growth after being unchanged in June, driven by some firms expanding their activities in response to the renewed increase in orders. Additionally, employment expanded at the fastest pace in six months.
Regarding prices, input prices rose at a slightly softer pace compared to June; both wage costs and purchase prices increased, driving up expenses. Inflationary pressure was due in part to the depreciation of the cedi against the U.S. dollar. Similarly, output prices increased at a softer pace, reflecting caution among companies amid subdued demand. Lastly, business confidence for the coming year softened slightly; optimism was pinned on economic stabilization and improved demand, contingent on the stabilization of the cedi exchange rate.