Easing Inflation Lifts Consumer Sentiment, Business Confidence Improves
Consumer and business sentiment improved in December 2025, with the Consumer Confidence Index increasing to 116.4 from 115.3 in October, while the Business Confidence Index rose to 107.7 from 106.5 over the same period.
The Bank of Ghana’s January Monetary Policy Report attributed the uptick in consumer confidence largely to easing inflationary pressures, which have bolstered household optimism about price trends and short-term economic conditions.
Business sentiment also strengthened, supported by firms meeting internal performance benchmarks, relative stability in the exchange rate, and expectations of lower borrowing costs going forward.
These developments are consistent with trends in Ghana’s Purchasing Managers’ Index, which climbed to 51.1 in December 2025 from 50.1 in November, signalling an expansion in private sector activity, driven mainly by higher new orders.
The improvement in confidence points to early signs that recent macroeconomic stabilisation efforts are beginning to feed through to the real economy. Policymakers view sentiment as a key transmission channel for growth, as stronger consumer confidence can underpin spending, while improved business outlooks may encourage investment and job creation.
Analysts caution, however, that sustaining these gains will depend on continued price stability and predictable financing conditions to avoid a setback in expectations.
