Economic activity across key sectors of Ghana’s economy showed divergent trends in the third quarter of 2025, according to the Bank of Ghana’s latest Monetary Policy Report.
While transport and industrial indicators recorded strong growth, the construction sector experienced a notable slowdown, reflecting uneven momentum in the broader economy.
Construction activity, proxied by cement sales volumes, declined by 4.1 percent year on year in September 2025. Total cement sales fell to 210,826.90 tonnes, down from 219,917.77 tonnes recorded during the same period in 2024. This contraction points to a moderation in building and infrastructure activities during the review period, a development that could have implications for employment and allied industries such as real estate, quarrying, and logistics.
On a month-on-month basis, the slowdown was equally evident. Cement sales declined by 4.1 percent in September 2025 compared to the 219,832.35 tonnes recorded in August. The decline suggests that the easing of construction activity was not only a year-on-year trend but also a short-term development within the quarter.
Despite the quarterly dip, cumulative cement sales for the first three quarters of 2025 remained broadly stable. Total sales reached 2,075,072.44 tonnes, marginally higher than the 2,061,663.21 tonnes recorded over the same period in 2024. This stability indicates that while activity softened in the third quarter, overall construction demand has not collapsed but rather moderated.
The Bank of Ghana attributed the relative year-on-year decline in cement sales to reduced construction activity during the review period. Factors such as elevated building material costs, tighter financial conditions, and cautious private sector investment may have contributed to the slowdown. Public sector capital expenditure constraints may also have played a role, particularly in large-scale infrastructure projects.
Transport Sector Records Strong Recovery
In contrast to the construction sector, transport activity showed robust growth during the third quarter. Data from the Driver and Vehicle Licensing Authority revealed a significant increase in new vehicle registrations, pointing to stronger consumer and business confidence in transport-related spending.
New vehicle registrations surged by 45.5 percent year on year to 18,209 units in September 2025, up from 12,511 vehicles registered in the same period of 2024. This sharp rise reflects increased demand for both private and commercial vehicles, supported by improved access to financing, fleet renewals, and growth in logistics and ride-hailing services.
On a cumulative basis, vehicle registrations during the first three quarters of 2025 rose by 36.3 percent to 185,455 units, compared with 136,112 units recorded in the corresponding period a year earlier. The strong performance of the transport sector suggests resilience in consumer spending and business activity, even as construction activity softened.
Industrial Electricity Consumption Signals Expansion
Industrial activity also recorded positive momentum during the third quarter, as reflected in higher electricity consumption by industries. Industrial power usage increased by 15.4 percent year on year in September 2025 to 316.36 gigawatts, compared with 274.26 gigawatts recorded in the same period of 2024.
The rise in electricity consumption points to increased production activity across manufacturing, processing, and other industrial operations. It also signals improved capacity utilization and a gradual recovery in industrial output, supported by relative stability in power supply and growing domestic demand.
Cumulatively, electricity consumption by industries for the first three quarters of 2025 increased by 10.3 percent to 2,808.40 gigawatts, up from 2,546.28 gigawatts recorded in the corresponding period of 2024. This sustained growth underscores the importance of industry as a key driver of economic expansion during the year.
Mixed Signals for Economic Outlook
The contrasting performance across construction, transport, and industry highlights the uneven nature of Ghana’s economic recovery in 2025. While sectors linked to consumption, mobility, and production are gaining momentum, construction activity remains under pressure, reflecting lingering challenges in financing and investment.
For policymakers, the data presents a complex picture. Strong growth in transport and industrial electricity consumption suggests improving economic confidence and productive activity. However, the slowdown in construction may warrant targeted interventions to stimulate infrastructure development and private sector building projects, given the sector’s strong multiplier effects on employment and growth.
The Bank of Ghana’s findings will likely inform monetary and fiscal policy discussions in the coming months. Sustained industrial growth could support revenue generation and export potential, while a recovery in construction would strengthen domestic demand and job creation.
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