The World Bank says Ghana’s business sentiment remains in contractionary territory.

However, the economic conditions have improved as the country’s Purchasing Managers Index (PMI) increased slightly from 50.2 in July 2025 to 50.8 in August 2026.

According to its October 2025 Africa Pulse Report, New orders and sustained job creation drove this increase.

“Unusually poor weather conditions led to a modest decline in output, although companies remained optimistic about future business. New business and sales orders continued to increase as reduced input costs and output prices were supported by a stronger cedi. Consumer price inflation declined for the seventh consecutive month, to 12.1% year-on-year in July 2025, down from 23.8% in December 2024”, it mentioned.

The Bretton Woods institution also said leading indicators point to mixed business sentiment across African economies.

“High-frequency indicators suggest that business activity in manufacturing and services across countries in the region continued improving in August, although at a slower pace compared to the first five months of the year. Factors explaining the expansion of business activity include robust domestic demand, driving an increase in new orders”, it pointed out.

“Declining input costs as inflationary pressures diminish are also playing a role. Export-driven economies are facing a higher demand in anticipation of higher tariffs or weaker demand”, it noted.

“Across countries, however, the World Bank said business sentiment varies widely.

It continues to expand in some countries (Nigeria and Uganda), while in others it has bounced back from contraction (Mozambique, South Africa, and Zambia) or remains in contractionary territory (Kenya and Ghana)”, it concluded.