Ghana’s business activity stable in July – PMI

Ghana’s private sector showed a broadly stable picture in July, with the S&P Global Ghana PMI rising to 50.1 from 49.7 in June. Business activity remained largely unchanged, while new orders saw a marginal increase and employment rose for the sixth consecutive month.

Input prices continued to climb sharply, though the rate of inflation eased in June, with a notable moderation in the rise of output prices. Input costs, including wage and purchase prices, remained high, driven in part by the depreciation of the cedi against the US dollar.

Despite persistent inflationary pressures, firms expanded their activity slightly due to a renewed increase in new business. Employment growth accelerated to its fastest pace since March, and purchasing activity also picked up after a previous contraction.

Vendor performance improved, extending a sequence of shortening delivery times that began in August 2021. However, optimism for the next 12 months softened, with businesses expressing hopes for economic stabilisation and a better demand outlook while noting the need for a stable cedi exchange rate.

Attribution: S&P Global