Alhassan Andani, Chief Executive of Stanbic Bank Ghana
Purchasing output in Ghana recorded its highest increase in August this year.
This was contained in the 2017 Purchasing Manager’s Index (PMI) launched in Accra on Tuesday September 26, 2017.
After experiencing slow growth in 2015 caused by erratic power supply, the economy showed good prospects and improvement in 2016 according to the report.
The improvement in 2016 was sharply accompanied by the rise in purchasing orders across sectors.
This resulted in an increase in purchasing activity, supporting record inventory accumulation in August 2017.
This record is reflected in the overall performance of the Ghanaian economy, as the economy advanced 6.6 percent year-on-year in the first three months of 2017, following a 4.1 percent expansion in the previous period.
This is the highest growth rate since the third quarter of 2014 as manufacturing recovered, oil and gas output jumped and agriculture rose the most in nearly three years.
Speaking at the launch of the Ghana PMI, Alhassan Andani, Chief Executive of Stanbic Bank Ghana, said the PMI provides an indication of actual happenings in private sector economies and it is one of the most consistent and recognized economic indicators in the world.
“The changing habits of consumers across sectors make it necessary for periodic assessments of the market environment. To this end, it is important for purchasing managers to accurately plan and critically define their purchasing focus to meet these changing habits,” Mr. Andani said.
“The PMI, which is a comprehensive source of data, provides indicators for governments, central banks, financial institutions, investors and corporates in making critical purchasing and economic decisions.”
The PMI monthly economic surveys also form a key source of business intelligence for participants operating in the ‘real’ economy and provides an advance signal of what is really happening in the private sector economy by tracking variables such as output, new orders, employment and prices across key sectors.
Data are collected either by an in-house panel manager at Markit or by a country local agency.
Companies are asked a standard sector-specific questionnaire on a monthly basis.
The PMI surveys are now available for more than 30 countries and for key regions including the Eurozone.
Together these countries account for over 85 percent of global gross domestic product (GDP), providing a true, internationally consistent indication of global economic trends based on fact, not opinion.
The IHS Markit PMI is supported by the Standard Bank Group, parent company of Stanbic Bank, with presence in 20 African countries.