Ghana’s construction and retail sectors are showing signs of softer activity even as selected building materials continue to record price increases.
The developments point to a market where demand is moderating while some construction costs remain elevated.
Data from the Bank of Ghana’s September 2026 Monetary Policy Report show that cumulative cement sales fell by 10.3% in the first seven months of 2026.
Specifically, cumulative cement sales dropped to 1.48 million tonnes between January and July 2026, from 1.64 million tonnes in the same period last year, due to a moderation in construction activity.
In July alone, cement sales fell by 4.9% year-on-year to 202,218 tonnes, from 212,735 tonnes in July 2025.
Sales also declined by 0.6% from the 203,435 tonnes recorded in June, reflecting softer demand across parts of the construction value chain.
If the slowdown persists, cement producers, distributors and other suppliers could face pressure on volumes, since the lower sales have not translated into lower prices across the market.
Retail sales also declined year-on-year in July, although cumulative retail activity remained higher than in the corresponding period of 2025.
The Bank of Ghana’s data show that retail sales fell by 1.5% year-on-year to GH¢236.41 million, from GH¢239.89 million in July 2025. Sales declined by 0.8% from GH¢238.25 million in June.
Despite the monthly and annual declines, cumulative retail sales increased by 2.2% between January and July 2026.
The figures suggest that retail activity lost some momentum in July, rather than indicating a sustained contraction across the entire seven-month period.
Domestic VAT collections provided a contrasting signal.
Collections rose by 11.5% year-on-year to GH¢2.14 billion in July. Cumulative collections increased by 13.8% to GH¢13.62 billion.
The rise in VAT receipts does not necessarily mean that sales volumes have increased, as the increase could reflect changes in prices, transaction values, compliance or the composition of taxable spending.
In September, the Channel One Market Price Barometer showed increases in selected construction materials, particularly cement and iron rods.
The price of a bag of 32.5R cement jumped from GH¢98 to GH¢100. The price of 42.5R cement rose from GH¢109 to GH¢117.
During the month, cement manufacturers introduced a temporary clinker demurrage surcharge amid congestion at Tema Port.
Extended vessel waiting times increased demurrage and operating costs, adding to the pressure on prices.
Iron rods rose from GH¢7,300 to GH¢7,500 per tonne, extending the upward movement recorded in August, when prices increased from GH¢7,200 to GH¢7,300.
The price of rough sand also increased from GH¢2,700 to GH¢2,800 per double-axle load.
The increase in cement and iron rods prices continues to affect project budgets, particularly for developers and households working with tight financing.
