Construction activities slump with 27.2% decline in cement sales
Per the Monetary Policy Committee (MPC) report for September 2023, the construction sub-sector in Ghana has shown signs of a challenging landscape. This sector, often viewed as a key barometer of economic activity, is represented through the volume of cement sales, which serves as an indicator of the sector’s health and performance.
In July 2023, the volume of cement sales witnessed a stark decline, plunging by 27.2% year-on-year. The figures stood at 194,597.00 tonnes, a substantial drop from the 267,479.46 tonnes recorded during the same month in the previous year. This decrease in cement sales points to significant challenges and a slowdown in construction activity.
Examining the month-on-month data for July 2023, there is a sense of stagnation, with cement sales remaining largely unchanged when compared to the figures from June 2023. The July 2023 sales, at 195,695.36 tonnes, were almost identical to those recorded the previous month.
Looking at the cumulative figures for the first seven months of 2023, it becomes even more apparent that the construction sub-sector is grappling with difficulties. Cement sales for this period declined by 25.8%, amounting to 1,549,147.05 tonnes. This figure is a significant drop from the 2,087,474.79 tonnes recorded during the same period in 2022.
The decline in cement sales, a critical component of construction, raises concerns about the overall health of the construction sub-sector in Ghana. The construction industry plays a pivotal role in the country’s economic development, and a decline of this magnitude suggests potential challenges in infrastructure development and real estate activities.
As Ghana’s policymakers and economic experts grapple with these concerning trends, there is a pressing need to identify the root causes of this decline and implement strategies that can sustain and increase growth in the construction sub-sector. These strategies include addressing factors such as economic conditions, investment, and regulatory environments, which all play a role in influencing the construction industry’s performance.