Ghana’s private sector saw an expansion for the fourth straight month according to the S&P Global Purchasing Manager’s Index (PMI). The country recorded a PMI of 51.6 in May compared to 51.3 in April; any PMI recording of more than 50 suggests an increase in activity levels compared to the previous month.

The PMI is a weighted average of five indices – New Orders, Output, Employment, Supplier’s Delivery Times, and Stocks of Purchase tracked by S&P Global across several countries. The PMI for May was driven by increased output, new orders, and employment.

Despite the increase activity, inflationary pressures have started to show as selling prices have risen. Confidence has also fallen to the lowest level since November 2022 on the back of currency pressures.

Ghana’s currency has depreciated by about 15% year to date and inflation is at 25%. The country expects to receive a third tranche of $360 million from the IMF this month as part of its $3 billion deal reached with the multilateral lender.