Business sentiment, consumer confidence softens in April 2021 – BoG data

• Business sentiments softened in April 2021 to 96.9 from 97.9 in February 2021

• Consumer confidence also softened to 93.2 in April 2021 from 97.1 in February 2021, according to data from the Bank of Ghana.

• The CIEA however recorded an annual growth of 26.8 percent at the end of the first quarter of 2021

Business sentiments and consumer confidence seemed to have softened in April 2021 respectively, according to the Bank of Ghana’s May 2021 Summary of Economic and Financial data.

Figures released by the bank showed that investors’ attitude towards the financial market softened from 97.9 to 96.9 in February 2021, indicating a dip in the sentiments of businesses whereas consumer confidence softened to 93.2 in April 2021 from 97.1 in February 2021.

The central bank indicated that regardless, the high level of optimism among business owners remained higher than during the onset of the coronavirus pandemic.

For consumer confidence, the banks said it heightened concerns among consumers, particularly on recently introduced taxes in the government 2021 budget statement.

Meanwhile, some economists and market analysts have upheld the decline in both consumer and business confidence was most likely attributed to the imposition and the effect of new taxes contained in government 2021 budget statement which have seen an increase in petroleum prices and a likely upward review of utility tariffs.

In all, the Bank of Ghana’s latest Summary of Economic and Financial data for May 2021 pointed towards a continuing growth momentum of the economy.

It showed a significant recovery among key sectors of the economy following the impact of the coronavirus pandemic.

The Composite Index of Economic Activity (CIEA), recorded an annual growth of 26.8 percent at the end of the first quarter of 2021 — the highest since December 2019 — compared to a growth of -1.9 percent in the corresponding period of 2020.

See the full document below: