Ghana: Private sector output growth momentum continues in August
Ghana’s private sector maintained its improving business conditions in August, showing increased growth momentum in output, new orders, and employment.
Cost pressures, though slightly intensifying, remained relatively restrained, while selling price inflation eased to its lowest point since November 2020.
The S&P Global Ghana Purchasing Managers’ Index (PMI) stayed above the 50.0 mark for the seventh consecutive month, indicating a sharper improvement in the private sector’s health, reaching its highest level in almost two years.
Output and new orders increased in August, primarily driven by stronger customer demand and manageable price pressures.
Job creation continued for the ninth month in a row, albeit at a modest pace, with backlogs of work decreasing consistently.
The increase in new orders also led to higher purchasing activity and stock accumulation. Supplier delivery times improved significantly, with prompt payments contributing to faster deliveries.
Expectations for business activity in the year ahead remained optimistic, although they dipped slightly to a four-month low. The relative stability in prices and exchange rates contributed to this positive outlook.
Overall, there is a positive outlook for Ghana’s private sector, with sustained growth, controlled costs, and optimism about future business activity contributing to a favorable economic environment.
