Consumer confidence softens amidst rising prices while business sentiments remain steady

The Central Bank of Ghana’s latest confidence surveys conducted in June 2023 have unveiled a complex tapestry of sentiments among consumers and businesses in the country.

While consumer confidence softened due to a noticeable uptick in prices of goods and services, spurring concerns about future economic conditions, business sentiments, on the other hand, remained largely unmoved.

The Bank of Ghana’s Monetary Policy Committee press release shed light on the dynamics driving business sentiments.

Despite businesses expressing optimism about the impact of stable macroeconomic conditions on their operations, apprehensions surfaced regarding the cost implications resulting from recent tax and utility tariff increases. These contrasting factors contributed to the nuanced outlook observed in the business community.

Similarly, Ghana’s Purchasing Managers’ Index (PMI) experienced a modest dip, declining to 50.4 in June 2023 from the previous month’s reading of 51.3. Notably, the PMI, however, managed to maintain a position above the critical threshold of 50.0 for the fifth consecutive month, indicating a continuation of stable business conditions in the country.

The divergent sentiments unveiled by the confidence surveys pose both challenges and opportunities for Ghana’s economic landscape. Policymakers and investors will closely scrutinize these indicators to comprehend the underlying forces driving consumer and business behavior.

Addressing concerns arising from inflationary pressures while capitalizing on the persisting optimism in the business sphere will be crucial in steering the economy toward sustainable growth and stability.

 Source: Norvanreports