Output growth strongest since Oct 2020

Growth accelerated sharply successful Ghana’s backstage assemblage arsenic the 2nd 4th of the twelvemonth got underway.

Both output and caller orders roseate overmuch much rapidly than had been the lawsuit successful March, with the erstwhile expanding to the largest grade successful four-and-a-half years. In turn, companies took connected other unit and looked to physique inventories. Business conditions were successful portion supported by a further easing of inflationary pressures.

The S&P Global Ghana Purchasing Managers’ Index™ roseate to 52.6 successful April from 50.6 successful March, signalling a coagulated betterment successful the wellness of the backstage sector, and 1 that was the astir pronounced since September 2021. Business conditions person present strengthened successful 3 consecutive months.

Growth of concern enactment accelerated peculiarly sharply during April, quickening to the fastest successful four-and-a-half years. Companies linked the marked enlargement successful output to higher caller orders and improving economical conditions.

A stronger request situation besides helped pb to a 3rd consecutive monthly summation successful caller orders. The complaint of enlargement was coagulated and the fastest since past November.

Growth of purchasing enactment besides deed a five-month precocious successful April arsenic companies responded to rising caller orders by expanding their input buying solidly.

This helped firms successful their efforts to physique inventories, which roseate modestly implicit the month. Some respondents indicated that they were looking to replenish stocks of purchases aft inventories had tally low, portion others attempted to physique reserves successful anticipation of further increases successful caller orders successful the months ahead.

Alongside maturation of purchasing, companies besides accrued their employment levels successful effect to higher caller orders. Workforce numbers roseate for the 3rd successive month, albeit astatine the slowest gait successful this sequence.

Firms were again capable to support connected apical of workloads contempt the sharper emergence successful caller business. Backlogs of enactment decreased modestly, and to a larger grade than successful March.

Inflationary pressures showed further signs of moderation successful April. Both acquisition prices and unit costs accrued astatine a slower gait for the 2nd period running, with rates of ostentation astatine 14- and four-month lows respectively.

Where acquisition prices rose, panellists linked this to currency weakness, though determination had been an betterment successful the spot of the cedi much recently. Higher worker expenses, meanwhile, were often linked to cost-of-living payments.

In enactment with the representation for input costs, the gait of output terms ostentation eased for the 2nd period running. The latest summation was the slowest since February 2024.

Meanwhile, suppliers’ transportation times shortened further, with punctual ordering helping pb to quicker deliveries. The complaint of betterment was broadly unchanged from that seen successful March.

Hopes that economical conditions volition proceed to strengthen, and that speech rates and prices volition stabilize, supported assurance that output volition emergence implicit the coming 12 months. Sentiment eased somewhat from that seen successful March, but was inactive supra the bid average.

Andrew Harker, Economics Director S&P Global Market Intelligence commented “Growth successful Ghana’s backstage assemblage stepped up a cogwheel successful April, suggesting immoderate existent momentum gathering arsenic the 2nd 4th of the twelvemonth got underway.

The cardinal present volition beryllium to spot if this momentum tin beryllium maintained successful the months ahead. A softening inflationary situation and mostly optimistic outlook among firms suggest that this whitethorn good beryllium the case.”