Ghana: Ghana PMI shows improved private sector growth in March
The S&P Global Ghana Purchasing Managers’ Index (PMI) improved to 50.9 in March from 50.2 in February. As a result, the index moved further above the 50.0 no-change threshold and signaled a faster improvement in private sector operating conditions compared to the previous month.
March’s upturn was primarily driven by growth in new orders accelerating from February, which led to a rebound in output: Output rose for the first time in three months, and its growth rate was the fastest since August 2023. Firms responded by increasing their employment, purchasing, and inventories, although the rate of growth in purchasing activity and employment remained mild and broadly unchanged from February.
In March, inflationary pressures markedly intensified, largely due to a weaker cedi against the USD. Purchase cost inflation was the strongest since December 2022. In turn, companies raised their selling prices at the fastest pace in 13 months. Despite this, business confidence in Ghana remained strongly positive, driven by hopes for relative price stability and the continued expansion of new orders in the year ahead.