The Bank of Ghana (BoG) has indicated signs of recovery in the country's economic activity, albeit at a slower pace.

According to the Central Bank, the updated real Composite Index of Economic Activity (CIEA) contracted by 3.7% in May 2023, compared to a contraction of 5.4% in April 2023, and a growth rate of 1.7% in the corresponding period of last year.

The Central Bank’s high-frequency real sector indicators showed that the main indicators that weighed down the index during the period were port activity, cement sales, credit to the private sector and imports.

Domestic Value Added Tax (VAT) collections, industrial consumption of electricity and exports, however, improved in the review period. Also, results from the Central Bank’s latest confidence surveys conducted in June 2023 reflected mixed sentiments.

While consumer confidence softened on account of an uptick in prices of goods and services, which also led to some concerns about future economic conditions, business sentiments, on the other hand, remained largely unchanged.

Businesses’ optimism about the impact of stable macroeconomic conditions on their operations was offset by concerns about the cost implications of recent tax and utility tariff increases.

Similarly, Ghana’s Purchasing Managers’ Index (PMI) dipped to 50.4 in June 2023 from 51.3 in the previous month. The index however remained above the 50.0 mark for the fifth successive month, signaling stable business conditions.