KAMPALA, Uganda — Business conditions for Uganda’s private sector improved for the eighth consecutive month in September, driven by sustained customer demand despite continued inflationary pressures, according to the latest Stanbic Purchasing Managers’ Index (PMI) released Friday.
The headline PMI rose to 54.0 in September, up from 53.3 in August. A reading above 50.0 signals an improvement in business conditions compared to the previous month.
Related posts
Christopher Legilisho, an economist at Stanbic Bank, noted that the momentum was supported by robust consumer demand.
“Private sector momentum kept the pace in September, with robust consumer demand elevating new orders and output alike,” Legilisho said. “Businesses remain hopeful about future activity, with sales and consumers expected to hold up over the next 12 months.”
The greater influx of new business spurred further expansions in both purchasing activity and employment levels. The rise in staffing numbers was largely attributed to temporary hiring across the sectors covered, including agriculture, mining, manufacturing, construction, wholesale, retail and services.
However, the survey highlighted that inflationary pressures persisted during the month.
“Purchase prices, wages and output charges rose due to sustained strong consumer demand,” Legilisho said, adding that firms raised their output charges for the 13th month running in an effort to pass increased costs onto customers.
The uptick in overall input prices was broad-based, with costs rising for items like cement and paper products, alongside increases in wage bills due to greater hiring.
Legilisho concluded that the data implies businesses are “confident about the economic trajectory, as displayed by their optimism about current and future conditions.”
