Consumer and business confidence strengthened in December 2025, reflecting growing optimism about Ghana’s economic outlook as inflationary pressures continue to ease.
The latest data show that the Consumer Confidence Index rose to 116.4 in December, up from 115.3 in October. Over the same period, the Business Confidence Index also improved, climbing to 107.7 from 106.5.
In its January Monetary Policy Report, the Bank of Ghana attributed the improvement in consumer sentiment largely to declining inflation, which has eased pressure on household budgets and improved expectations about short-term economic conditions.
Business sentiment followed a similar upward trend. Firms reported meeting internal performance targets, benefiting from relative stability in the exchange rate and anticipating lower borrowing costs in the months ahead.
The positive momentum is also reflected in Ghana’s Purchasing Managers’ Index (PMI), which increased to 51.1 in December from 50.1 in November. A PMI reading above 50 signals expansion, indicating that private sector activity picked up toward the end of the year, driven mainly by stronger new orders.
Economists say the improvement in sentiment suggests that recent macroeconomic stabilisation measures are beginning to filter into the real economy. Stronger consumer confidence can support household spending, while improved business outlooks may encourage investment and job creation.
However, analysts caution that sustaining this progress will depend on maintaining price stability and ensuring predictable financing conditions, as any renewed volatility could quickly dampen expectations.
