Ghana’s private sector remained in growth territory at the end of the second quarter of 2023, as the inflationary environment continues to ease.
Output and new orders rose again, albeit at softer rates, with employment and purchasing activity also up. Meanwhile, business confidence hit a five-month high.
Input cost inflation and output price inflation were both showing signs of reducing for the seventh consecutive month, indicating softer inflationary pressures.
The private sector’s business conditions continued to improve in June, the fifth improvement in as many months, as the S&P Global Ghana Purchasing Managers’ IndexTM (PMI) remained above the 50.0 no-change threshold.
Despite this, the score decreased to 50.4 from 51.3 in May, reflecting a weaker and barely improving operating environment.
At the halfway point of the year, output and new orders both increased at slower rates, mirroring the picture given by the headline index in June.
The expansion of activity was the current straight five-month expansion’s joint worst increase. Higher new orders and lessened inflationary pressures were associated with increased output when it occurred.
The expansion of new business, which grew strongly once more in June, was also aided by slower inflation.
Now, new orders have increased in each of the last five months.
In June, there were signs of softer inflationary pressures on input costs and output prices.
Source: b&ft
