High frequency real sector indicators showed a sustained turnaround in economic activity.

According to the Bank of Ghana, the updated real Composite Index of Economic Activity (CIEA) contracted at a slower pace by 2.8% year-on-year in July 2023, indicating a slight improvement from a contraction of 3.1$ in June 2023 and 3.7% in May 2023,.

The main indicators that contributed to the slight recovery in the Index during the period were industrial consumption of electricity, private sector contributions to Social Security, and tourist arrivals.

Credit to the private sector, cement sales, and port activity, however, slowed down over the period.

Meanwhile, Consumer and Business sentiments were mixed, as indicated by the results from the Central Bank’s latest confidence surveys conducted in August 2023.

While the Business Confidence Index reflected the achievement of short-term company targets with positive sentiments about industry prospects due to improving consumer demand and the relative stability in the local currency, Consumer Confidence Index dipped due to the utility tariff adjustments and recent increases in ex-pump petroleum prices.

Ghana’s Purchasing Managers’ Index (PMI) for August 2023, on the other hand, increased for the sixth successive month, pointing to a sustained improvement in business activity.