July’s Purchasing Managers’ Index (PMI) for Ghana indicates a stabilization in private sector activity after a slight decline in June. The PMI rose to 50.1 in July from 49.7 in June, suggesting that business conditions remained broadly unchanged at the beginning of the third quarter. A PMI reading above 50 indicates expansion, while below 50 indicates contraction.

Expansion in new business orders was minimal while output prices saw an increase although not at the level of June. Inflationary pressures continue to be a concern with both wage costs and purchase prices seeing an increase. The acceleration in wage costs was attributed to businesses trying to ease the cost of living pressure on their employees.

Optimism for the next 12 months remains high although a softening was witnessed in July. Among the top concerns of panellists was the stability of the Ghana cedi, which has depreciated by about 23% this year against the US dollar.