Ghana’s private sector ended the first quarter of 2026 on a recovery note, with the S&P Global Ghana Purchasing Managers’ Index (PMI) rising back above the neutral threshold in March after two months of contraction-level readings.
The PMI climbed to 51.4 in March from 49.2 in February, signalling the first improvement in overall business conditions in three months. A reading above 50.0 indicates expansion. The March result was also the most pronounced strengthening of private sector health since May 2025, according to the data released Tuesday by S&P Global.
Business output increased for the first time in three months, at a pace that matched December 2025 as the joint-fastest in ten months. Survey respondents attributed the recovery to stronger economic conditions, improved customer demand and a continued rise in new orders.
New orders grew for the second consecutive month and at the fastest rate since May 2025. Companies reported securing new customers, and the continued reduction in selling prices supported demand further. Ghanaian firms cut their output prices for the eleventh successive month in March, though the pace of reduction eased slightly compared with February.
Input costs also fell again, as firms continued to benefit from stable exchange rates. Some companies flagged higher fuel costs, however, limiting the overall decline in purchase prices to a marginal reduction.
The hiring trend held firm, with employment rising for the fourteenth consecutive month and at a faster rate than in February. Purchasing activity returned to growth for the first time in three months, and inventory levels expanded at the most marked pace in three months.
Despite the broadly positive picture, business confidence eased to an 11-month low. Some survey respondents cited concern that rising costs linked to the conflict in the Middle East could weigh on the outlook in the months ahead.
Andrew Harker, Economics Director at S&P Global Market Intelligence, said the expansion in output was encouraging and was supported by solid new order growth, which in turn drove greater purchasing activity and sustained hiring. He noted that while early concerns around Middle East conflict costs existed, the private sector entered the period with sound foundations given the absence of significant inflationary pressure and a generally positive demand environment.
