Consumer sentiments continue to improve – BoG

The results of the latest Bank of Ghana (BoG) Confidence Survey conducted in January 2015, indicate that consumer sentiments continue to improve.

According to Dr Henry Kofi Wampah, BoG Governor, the overall consumer confidence index increased to 89.9 in December 2014, up from 85.6 recorded in October 2014.

He said similarly, the business confidence index moved up to 99.2 in December from 88.7 in September.

Dr Wampah who was speaking at the BoG Monetary Policy Committee press briefing in Accra on Wednesday said headline inflation, which peaked at 17 per cent in November and December 2014, declined to 16.4 per cent in January 2015.

He said this reflected lower non-food inflation which fell to 23 percent in January 2015 from 24.1 per cent in November 2014; adding that however, food inflation rose to 6.9 from 6.6 per cent over the same comparative period.

According to him, the latest data from the Ghana Statistical Service estimates that real gross domestic product (GDP) growth rate for 2014 was 4.2 per cent, compared to 7.3 per cent recorded in 2013.

He said the deceleration in economic activity during 2014 was broadly attributed to energy supply constraints and rising input costs.

“The Bank of Ghana’s Real Composite Index of Economic Activity (CIEA) recorded a growth of 7.9 per cent year-on-year in the fourth quarter of 2014 compared with a growth of six per cent for the same period last year,” the Governor stated.

He observed that the main drivers of the improved economic activity were DMBs Credit to Private sector, Social Security and National Insurance Trust (SSNIT) contributions and Port Activity.

Consumer sentiment is a statistical measurement and economic indicator of the overall health of the economy, as determined by consumer opinion.

It takes into account an individual's feelings toward his or her own current financial health, the health of the economy in the short-term, and the prospects for longer-term economic growth.