Ghana’s manufacturing sector recorded a modest but significant rebound in October 2025, with manufacturing inflation rising to 2.5 percent, up from 1.7 percent in September, according to the latest Producer Price Index (PPI) published by the Ghana Statistical Service (GSS).
The rise in factory-gate prices suggests steady improvements in domestic demand, enhanced production activity, and relative stability in the cost of imported raw materials.
With manufacturing constituting 35 percent of the total PPI basket, the movement in this sector carries strong implications for overall industrial performance and consumer pricing trends.
The GSS data reveals stronger activity across several key manufacturing sub-sectors. The highest year-on-year producer price increases were recorded in the manufacture of textiles (35.0%), rubber and plastics products (26.7%), beverages (17.6%), and food products (13.9%)
Other areas such as chemicals, fabricated metal products, printing, motor vehicle assembly, and furniture manufacturing also posted positive year-on-year inflation levels.
These gains reflect improved demand in both export and domestic markets, particularly in sectors supported by ongoing government industrialisation initiatives and increased private investment.
However, demand from local retailers and regional export markets has grown steadily since the third quarter, supported by improved access to raw materials and stable exchange rate movements.
Despite the rebound, several manufacturing groups recorded negative producer inflation, suggesting uneven recovery across the industry. These include: manufacture of coke and refined petroleum products (–10.1%), basic metals (–9.0%), wood and wood products (–6.7%) and transport equipment (–2.0%).
GSS analysts indicate that declines in these areas may be due to falling global commodity prices, stiff competition from imports, reduced construction demand, and supply chain delays affecting component-heavy industries.
Nonetheless, despite lower input costs, demand from construction firms remains sluggish, which continues to suppress prices in the basic metals and metalworks markets.
Economists say the rise in manufacturing inflation is not necessarily a sign of rising production hardships; rather, it reflects a healthier industrial ecosystem where steady demand supports pricing power.
The manufacturing rebound is also essential for employment, as the sector remains one of Ghana’s highest job creators across food processing, agro-industry, packaging, light engineering, and textiles.
Many industry players remained cautiously optimistic. While demand is improving, uncertainties persist around electricity tariffs, fuel prices, port charges, and exchange rate fluctuations.
The GSS noted that month-on-month manufacturing inflation increased from 0.2 percent in September to 1.5 percent in October, indicating short-term pressure on production costs.
Manufacturers say this rise, though manageable, means businesses must continue to prioritise efficiency, diversification of raw material sources, and technology upgrades.
The GSS also urged companies to routinely analyse producer inflation trends to guide pricing, operational efficiency, and investment decisions.
Again, it advised government to prioritise incentives that support technology adoption, workforce upskilling, and competitive local value chains.
