Kampala, Uganda – Uganda’s private sector has continued to show signs of recovery, with the latest Purchasing Managers’ Index (PMI) data indicating a sustained improvement in business conditions.
The Stanbic Bank Uganda PMI rose to 52.9 in March, up from 52.6 in February, marking the second consecutive month of growth. The index, which is compiled by S&P Global, measures the performance of the private sector and is based on a survey of purchasing managers.
The latest data pointed to a broad-based improvement in business conditions, with all five sectors surveyed – agriculture, mining, manufacturing, construction, and services – recording growth.
“The March PMI data points to a sustained recovery in Uganda’s private sector, driven by strong demand conditions and increased input buying,” said Christopher Legilisho, Economist at Stanbic Bank Uganda.
The report noted that new business received by Ugandan companies increased again in March, with panelists highlighting new customer acquisitions and favourable demand conditions. However, inflationary pressures persisted, with higher purchase and staff costs driving up overall input prices.
Despite the challenges, businesses remained optimistic about the economic outlook, with firms forecasting further improvements to the sales environment and new client wins.
The Ugandan government has implemented several measures to support the private sector, including tax reforms and investment in infrastructure. The country has also seen an increase in foreign investment, particularly in the oil and gas sector.
The recovery of Uganda’s private sector is seen as crucial to the country’s economic growth, which has been impacted by the COVID-19 pandemic and other global challenges.
The Stanbic Bank Uganda PMI is widely watched by investors and policymakers, and is seen as a key indicator of the country’s economic performance.
