Ghana's private sector slowdown in February eased

LootboxPhobia · 2026-03-04T13:54:35+00:00

According to the February S&P Global Ghana Purchasing Managers' Index, the deterioration of business conditions in Ghana's private sector has slowed, new orders have resumed growth, and the PMI index is at 49.2, still below the expansion/contraction threshold. Despite ongoing declines in output, most companies remain optimistic about future output growth.

LootboxPhobia

2026-03-04 13:54:35

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Investing.com – According to the S&P Global Ghana Purchasing Managers’ Index released on Wednesday, the deterioration of business conditions in Ghana’s private sector in February has slowed, with new orders rebounding after a decline in January.

The February PMI was 49.2, up from 48.5 in January, but still below the 50.0 threshold that separates expansion from contraction. This reading indicates a modest deterioration in business conditions midway through the first quarter of this year.

New orders in February recovered to growth after declining for the first time in 12 months in January. Companies attributed the growth to promotions, marketing efforts, and price reductions.

Business activity declined for the second consecutive month, though the decrease was mild and weaker than in January. Despite the rebound in new orders, output still fell.

Overall input prices decreased for the fourth consecutive month in February, with the largest drop since August 2025. Purchase prices fell sharply, and employee costs declined for the first time since July 2020. Firms attributed the reduction in procurement costs to the appreciation of the cedi.

Output prices fell for the tenth consecutive month, with the largest decrease in six months, as cost savings were passed on to customers.

Employment saw a slight increase in February, marking over a year of continuous job creation. However, growth slowed to the lowest level during the current expansion, partly due to some companies reporting employee resignations. Backlogs of work decreased modestly, but the decline was less than in January.

Purchasing activity contracted for the second month in a row in February, with the decline matching the previous survey period. Inventory of purchases continued to increase slightly, while supplier delivery times sped up.

Nearly 78% of respondents expressed confidence in output growth over the next year, expecting currency stability and falling prices to support improvements in new orders.

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