The country’s private sector activity expanded for the first time in a year as Ghana’s Purchasing Managers Index increased to 50.2 in February 2023, from 47.2 in January 2023, data from the Bank of Ghana has revealed.

With indications of strengthening demand, production and new orders returned to growth.

In addition, the purchasing activity rebounded, ending a 14-month decline, while inventory levels rose at the fastest rate since September 2021.

On the pricing front, input costs climbed at the slowest rate in a year, but still significantly, as both purchase prices and labour expenses rose.

Databank Research believes private sector activity will continue to recover as business sentiments improve.

In December 2022, the consumer and business confidence surveys conducted pointed to a marginal improvements in sentiments.

The Consumer Confidence Index increased to 79.2 in December 2022 from 73.9 in October 2022 on the back of the recent reductions in ex-pump petroleum prices and transportation fares.

The Business Confidence Index also improved to 75.7 from 72.6 in the same comparative period due to the achievement of short-term targets and optimism about company and industry prospects, following the rebound of the local currency.