The Impact of Macroeconomic Indicators on Cement Prices in Ghana

Portland cement is an important commodity in almost every part of the world. Its importance is visible in the construction and concrete industry which are very pivotal in the growth of major economies. In Ghana the construction industry is among the pillars the drives the economy. This study attempted to investigate the impact of some selected macroeconomic indicators on the performance of cement prices between the period of 2000 and 2014. The macroeconomic indicators studied were inflation rate, monetary policy rate and exchange rate. The study used multiple linear regression analysis for the interpretation of the inferential statistical data. The regression results showed that cement cost was not responsive to the trends in inflation and monetary policy rates. It was however responsive to trends in the exchange rate pattern showing a positive relation. To effectively control cement prices, the study recommends an effort to use local materials such as burnt bricks and calcined clay pozzolan which don’t need so much of foreign exchange for any form of importation.