Consumer and business confidence strengthened in December 2025, with the Consumer Confidence Index rising to 116.4 from 115.3 in October, while the Business Confidence Index climbed to 107.7 from 106.5 over the same period.

According to the January Monetary Policy Report released by the Bank of Ghana, the improvement in consumer sentiment was largely driven by easing inflationary pressures, signalling growing optimism among households about price stability and near-term economic prospects.

Business confidence also firmed, as companies cited the attainment of internal performance targets, relative exchange rate stability, and expectations of lower borrowing costs as key drivers of their outlook.

The results align with movements in Ghana’s Purchasing Managers’ Index, which rose to 51.1 in December 2025 from 50.1 in November, indicating an expansion in business activity, mainly on the back of increased new orders.

The rebound in sentiment suggests that recent macroeconomic stabilisation measures are beginning to filter through to the real economy. For policymakers, improving confidence is a critical transmission channel for sustaining growth, as stronger household sentiment can support consumption, while rising business optimism may translate into higher investment and hiring decisions.

Analysts say maintaining price stability and predictable financing conditions will be crucial to locking in these gains and preventing a reversal in expectations.