Ghana’s Private Sector Health Improves on Disinflation Advantage
With a sustained decline in headline inflation, private sector activity improved further in December, according to the Standard & Poor’s Purchasing Manager Index (PMI) released today.
S&P noted that business activity returned to growth in December as new orders continued to rise. In turn, companies increased their purchasing activity and employment, while remaining strongly optimistic that output will expand further over the course of 2026.
It said firms continued to benefit from a lack of inflationary pressure, with both input costs and output prices down again in December.
The S&P Global Ghana Purchasing Managers’ Index™ (PMI®) rose to 51.1 in December from 50.1 in November. The reading signalled a modest strengthening in the health of the private sector, extending the current sequence of improvement to three months.
The latest strengthening of business conditions was the most pronounced since June last year, S&P said in the report published on Tuesday. Business activity returned to growth in December after stagnating in November, and rose solidly during the month.
Respondents linked higher output to improving customer demand and reduced prices, which also contributed to sustained growth of new orders.
New business increased for the eleventh consecutive month, and at the fastest pace since August 2025. With new orders rising, companies required greater workforce numbers in December and expanded employment for the eleventh month in a row.
Although easing to the slowest since last April, the pace of job creation remained solid. Input buying was also up, while firms accumulated inventories, both in line with current new order requirements and positive expectations for future demand.
Stocks of purchases rose for the fifteenth successive month and at the fastest pace since November 2024. Companies in Ghana were subsequently able to keep on top of workloads in December despite sustained new order growth.
Backlogs of work decreased modestly again during the month. Capacity in supply chains was also sufficient, as signalled by a further shortening of vendor lead times. As well as seeing improvements in supply chains, companies also continued to record falling input costs at the end of 2025.
Purchase prices decreased for the second month running as the effects of currency appreciation earlier in the year continued to feed through to lower material costs.
On the other hand, staff costs increased solidly, with the pace of inflation unchanged from that seen in November. With overall input costs ticking down, companies lowered their output prices again in December.
Charges decreased for the eighth month running. The latest fall was slight and matched that recorded in the previous survey period. Looking to the prospects for 2026, companies remained strongly optimistic that output will increase.
S&P said respondents indicated that they expect output to rise on the back of higher new orders, as long as exchange rates and prices remain broadly stable. Confidence dipped marginally in December and was the lowest in eight months, but remained elevated and above the series average.
Commenting, Andrew Harker, Economics Director at S&P Global Market Intelligence, said, “The December reading of the S&P Global Ghana PMI rounds off a positive year for the private sector, in which a marked appreciation of the currency helped to subdue inflation and support growth of new orders and business activity. These trends were again apparent at the end of 2025.
“Given the positivity experienced in 2025, companies are optimistic about prospects for 2026 as long as the stability in exchange rates and prices is maintained. S&P Global Market Intelligence predicts a 5.0% increase in GDP for Ghana in 2026. Naira Rises to N1,419 after Historic Performance in 2025
