Consumer and business confidence saw an increase in December 2025, with the Consumer Confidence Index advancing to 116.4 from 115.3 in October, while the Business Confidence Index rose to 107.7 from 106.5 during the same timeframe.
As per the January Monetary Policy Report published by the Bank of Ghana, the enhancement in consumer sentiment was primarily attributed to diminishing inflationary pressures, indicating a growing sense of optimism among households regarding price stability and short-term economic outlook.
Business confidence also strengthened, as firms reported achieving internal performance targets, relative stability in exchange rates, and expectations of reduced borrowing costs as significant factors influencing their outlook.
These findings correspond with the trends observed in Ghana’s Purchasing Managers’ Index, which increased to 51.1 in December 2025 from 50.1 in November, signifying an expansion in business activity, largely driven by a rise in new orders.
The recovery in sentiment indicates that recent macroeconomic stabilization efforts are starting to have a positive impact on the real economy. For policymakers, enhancing confidence is a vital transmission mechanism for sustaining growth, as improved household sentiment can bolster consumption, while heightened business optimism may lead to increased investment and hiring decisions.
Experts assert that ensuring price stability and predictable financing conditions will be essential for solidifying these advancements and averting a decline in expectations.
