Ghana’s private sector expands in May – PMI

Ghana’s private sector showed continued expansion in May, with output, new orders, and employment on the rise. However, inflationary pressures increased due to currency depreciation, impacting input and output costs. Business confidence hit a year-and-a-half low.

The S&P Global Ghana Purchasing Managers’ Index (PMI) rose to 51.6, indicating modest sector health improvement, the most notable in 2024.

Demand grew, reflected in increased production and new orders, although at a slightly slower pace than in April. Inflation intensified, with purchase and staff costs rising sharply.

Selling prices also increased significantly. Concerns over currency weakness dampened sentiment, despite optimism for future output growth.

Employment rose slightly, aiding workload management and backlog reduction. Purchasing activity expanded to anticipate price hikes. Though suppliers’ delivery times were shortened, challenges like high prices and power outages impacted deliveries.