Ghana’s private sector strengthened in September as new orders, output and employment increased, pointing to improving business conditions and stronger confidence heading into the final quarter of 2026.
The S&P Global Ghana Purchasing Managers’ Index (PMI) rose to 51.3 in September, from 50.8 in August, marking the second consecutive month of expansion after the index fell below the 50.0 threshold in July.
A PMI reading above 50 indicates an improvement in private-sector business conditions compared with the previous month. The September reading was the strongest since March.
The latest improvement was supported by a second consecutive monthly increase in new orders, with companies surveyed attributing stronger demand to improving economic conditions, marketing efforts and referrals from existing customers.
Output also increased for the second straight month, recording its strongest growth since May 2025.
According to the survey, companies linked the increase in output to stronger demand, competitive pricing and the introduction of new products.
Hiring remains strong
Employment emerged as one of the strongest areas of improvement, with private-sector firms increasing their workforce for the 20th consecutive month.
The sustained hiring trend suggests businesses remain sufficiently confident about demand to expand their workforce despite continued pressure on operating costs.
Companies also reduced their backlogs of work for a sixth consecutive month, while supplier delivery times improved further.
Purchasing activity, however, increased only marginally as some businesses indicated that stocks accumulated in previous months had reduced the need for additional purchases.
Cost pressures moderate
The survey also showed some moderation in price pressures.
Input costs and staff costs increased at slower rates than in August, although higher fuel prices remained a key source of pressure on purchasing costs.
Businesses continued to raise selling prices for the sixth consecutive month, but only marginally.
The survey found that while some companies increased charges to reflect higher costs, others offered discounts to attract new orders and remain competitive.
The latest business conditions data come against a backdrop of easing consumer inflation, with the Ghana Statistical Service recording inflation at 5.0 percent in August 2026.
Confidence reaches seven-month high
Business confidence also strengthened significantly in September.
More than three-quarters of surveyed companies expected their output to increase over the next 12 months, representing the highest level of optimism in seven months.
Firms cited expectations of stronger demand, greater stability in prices and the exchange rate, as well as plans to expand their operations.
Andrew Harker, Economics Director at S&P Global Market Intelligence, said the second consecutive month of rising output provided grounds for optimism that the current improvement could be sustained.
He also indicated that the historical relationship between the PMI and official economic statistics pointed to further solid GDP growth in the third quarter.
Private sector momentum
The latest PMI reading provides an early indication that business activity remained resilient as Ghana entered the final quarter of the year.
The development follows official data showing that Ghana’s economy expanded by 6.0 percent in the second quarter of 2026, suggesting that private-sector activity remained supportive of overall economic growth.
For businesses, the combination of stronger orders, rising output and sustained hiring offers a more positive operating environment.
However, continued increases in fuel and other input costs remain a risk to businesses, particularly those with limited capacity to pass higher costs on to consumers.
The September PMI therefore points to a private sector gaining momentum, but one still navigating cost pressures as businesses position themselves for stronger demand and expansion in the final months of 2026.
The S&P Global Ghana PMI is based on monthly responses from purchasing managers at about 400 private-sector firms. The September survey was conducted between September 10 and 28, 2026.
