The Stanbic Bank Ghana PMI dropped to 51.8 in July of 2018 from 52.7 in June.
The reading pointed to a weaker expansion in private sector activity, as new orders and output increased at the softest pace in twenty two months mainly driven by a lack of money in the economy and a slowdown in reaching completion of projects.
Meanwhile, job creation and purchasing activity rose at a faster pace.
On the price front, input price inflation accelerated due to the weakness of the Ghanaian cedi against the greenback in response output cost also went up.
Composite Pmi in Ghana is reported by Markit Economics
The Stanbic Bank Ghana Purchasing Managers’ Index is based on data compiled from monthly replies to questionnaires sent to purchasing executives in approximately 400 private sector companies, which have been carefully selected to accurately represent the true structure of the Ghanaian economy, including agriculture, construction, industry, services and wholesale & retail.
The panel is stratified by GDP and company workforce size.
Survey responses reflect the change, if any, in the current month compared to the previous month based on data collected mid-month.
The Purchasing Managers’ Index (PMI) is a composite index based on five of the individual sub-components with the following weights:
New Orders- 0.3,
Suppliers’ Delivery Times- 0.15,
Stock of Items Purchased- 0.1, with the Suppliers’ Delivery Times sub-component inverted so that it moves in a comparable direction.
Credit: Trading economics