KAMPALA, UGANDA — Uganda’s private sector saw continued expansion in July, with businesses reporting sustained growth in new orders and business activity, according to the latest Stanbic Bank Purchasing Managers’ Index (PMI).
While the headline index dropped to 53.6 in July from 55.6 in June, it remained above the 50.0 mark, signaling a sixth consecutive month of improvement in business conditions.
“The Stanbic Bank PMI signaled further expansion in July amid healthy economic conditions in the private sector,” said Christopher Legilisho, an economist at Stanbic Bank. He added that the increase in new orders led to a rise in purchasing activity and a renewed increase in backlogs of work, the first since December.
Key Takeaways
Business Activity: Fueled by strong demand and new client wins, business activity and new sales continued to grow across all sectors.
Employment: Firms responded to the increased workload by hiring more workers, both temporary and permanent. The manufacturing sector was the only one to see a decline in employment.
Pricing: Input costs, including wages, fuel, and utilities, rose in July. As a result, businesses increased their selling prices to offset the higher expenses, though the construction sector was an exception, with selling prices dropping.
Outlook: Ugandan firms remain optimistic about future business conditions, expecting strong economic growth in the coming months.
The PMI, a weighted average of five key indices, is based on a monthly survey of purchasing managers from about 400 firms in sectors including agriculture, manufacturing, and construction. A reading above 50.0 indicates an improvement in business conditions. The survey is conducted by S&P Global.
