Business activities picking up satisfactorily after lifting of restrictions – market survey
Adnan Adams Mohammed
A new market survey report released by IHS Markit Ghana PMI
has indicated that business confidence has rebounded some few weeks after the
restrictions were eased.
Ghana’s Purchasing Managers’ Index rose by 15 index points
in May, registering 46.7 from the record low of 31.7 posted in April
representing a leap jump in business confidence to all time high levels since
November 2018, according the report.
Although, the private sector moved towards stabilisation in
May as a loosening of coronavirus disease (COVID-19) lockdown measures resulted
in much softer reductions in output and new orders than the unprecedented
declines recorded in April. An economist with HIS Markit has said, the rebound
in confidence does not necessarily mean business activities have picked up and
come back to normal, but simply suggests, the rate of contraction slowed
substantially from that seen in April as some firms restarted operations
following a loosening of COVID-19 lockdown measures.
“While still signaling a private sector in decline, the May
PMI data for Ghana provide cause for encouragement. Rates of contraction in
output and new orders eased markedly following the loosening of lockdown
restrictions, with both nearing stabilisation”,Economics Director at IHS
Markit, Andrew Harker said in the report.
That notwithstanding, the report adds, there were still
marked job cuts recorded in May, only the pace of reduction was slightly softer
than that seen in April. Some business owners said they had to cut down on
staff due to social distancing rules.
Mr. Harker said the job cuts situation raises a cause for
concern, especially, the fact that most of them are as a result of social
distancing rules. He maintains this could potentially delay any return to net
hiring, even if new order volumes improve.
He added that the data raise hopes that a return to growth
in the economy may even be seen in June as President Akufo-Addo has further
eased the restrictions he imposed in March to contain the spread of the
disease.
Despite the number of recorded cases hitting more than
8,000, President Akufo-Addo says it is time for some important activities to
resume, at least partially, in order to reduce the socio-economic impact the
restrictions have brought on people.
Some of the businesses and gatherings that have been given
green light to come back from hibernation are restaurants, schools, religious
events, among others, but under the condition that they will respect and follow
the laid down rules outlined.
For example, restaurants can now open, but those providing
seated services must operate under appropriate social distancing arrangements
and hygiene protocols. Again, conferences, workshops, weddings, and political
activities, except rallies, are allowed to take place but with limited numbers
not exceeding 100 persons present, with the appropriate social distancing and
hygiene protocols.
Then, schools, were only open to final year students in the
university, senior high, and junior high but with limited numbers in each
classroom, along with observing all the preventive protocols outlined by the
Ministry of Health.
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