Latest PMI data signalled improving growth momentum in the Ghanaian private sector during November, with output, new orders and purchasing activity all rising at sharper rates than in October.
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On the price front, a further sharp increase in input costs encouraged companies to raise their selling prices.
The headline figure derived from the survey is the Purchasing Managers’ Index™ (PMI™).
Readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show a deterioration.
The main findings of the November survey were as follows: At 54.8, the PMI signalled a marked monthly improvement in the health of the Ghanaian private sector, extending the current sequence of strengthening business conditions to 22 months.
Moreover, the index rose from 53.7 in October to signal a sharper improvement than in the previous month.
New orders rose sharply in November, with customer recommendations a key driver of growth.
Improving economic conditions, good quality products and marketing activities were also mentioned as factors leading to higher new orders.
Furthermore, the rate of expansion was quicker than in October.
The rate of expansion in business activity also accelerated during the month.
Output rose solidly as companies responded to new order growth.
Activity has now increased in each of the past 14 months.
The rise in output was not sufficient to prevent a build-up of backlogs of work, however, the first in six months.
Panellists linked the accumulation to higher new orders, while there were some reports of a lack of resources.
Companies attempted to relieve some pressure on capacity by taking on extra staff.
Alongside the filling of vacant positions, panellists also linked job creation to business expansion plans.
Purchasing activity increased at a substantial pace in November, and one that was sharper than seen in October.
The rise in input buying fed through to an accumulation of stocks of purchases, the twenty-second in as many months. ■