S&P PMI: Ghana’s private sector grows in August

Ghana’s private sector returned to growth in August 2024, with the S&P Global Ghana Purchasing Managers’ Index (PMI) rising to 51.1 from 50.1 in July. Business confidence improved significantly, with nearly 77 per cent of respondents expecting output to expand, driven by anticipated stability in exchange rates and prices and a projected boost in activity post-election.

Business activity edged up as new orders surged at the fastest pace since December 2023, fueled by rising client demand and effective marketing efforts. Employment also saw its strongest growth of 2024, extending the job creation streak to seven months. However, inflationary pressures persisted, with input costs and output prices rising, albeit at a slower rate.

Input cost inflation eased to a six-month low, while output price inflation dropped to its lowest level since March. Despite this, companies continued to pass higher costs onto customers. Purchase prices and staff costs grew at a reduced pace, though raw material and transport costs persisted in driving up expenses.

The report highlights a reduction in backlogs of work, with companies managing increased workloads through job creation. Purchasing activity fell as some firms reported sufficient inventories. Vendor performance improved, with the fastest reduction in delivery times since April.

Attribution: S&P Global Ghana PMI®

Subediting: M. S. Salama