Economic activity pickup, consumer confidence improves – BoG

Trends in the Bank of Ghana’s high frequency real sector indicators point to a sustained pickup in economic activity.

The updated real Composite Index of Economic Activity (CIEA) recorded an annual growth of 1.6% in July 2024, compared to a contraction of 2.8% for the corresponding period of 2023.

Construction activities, consumption demand by households and firms, exports, imports, and tourist arrivals contributed to the improvement in economic activity during the period.

Meanwhile, its latest surveys conducted in August 2024 showed a rebound in both consumer and business confidence.

According to the report, consumer confidence improved on account of easing inflationary pressures which has led to optimism about future economic conditions.

Similarly, business confidence firmed up as firms met their short-term targets and expressed positive sentiments about company and industry prospects amidst improving macroeconomic conditions.

The survey findings were broadly in line with observed trends in Ghana’s Purchasing Managers’ Index (PMI), which improved to 51.1 in August 2024 from 50.1 in the previous month.