Kampala, Uganda – Uganda’s economy has sustained its growth momentum, with the Stanbic Purchasing Managers’ Index (PMI) recording 52.9 in October, indicating a seventh consecutive month of expansion.
The PMI, compiled by S&P Global, measures the performance of the private sector. A reading above 50 indicates growth.
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“The latest PMI data for Uganda indicated a sustained expansion in the Ugandan private sector, driven by increased demand and hiring,” said Mulalo Madula, Senior Analyst at Stanbic Bank.
The growth in Uganda’s private sector was driven by increases in new orders and output, which were fueled by rising demand. This led to sustained employment growth, with firms hiring additional staff.
“The October PMI results underscore the resilience of the Ugandan economy, with businesses benefiting from buoyant demand,” Madula added. “The sustained increase in output is encouraging, and firms are optimistic about future growth, bolstered by planned advertising spending and expectations of continued demand.”
However, firms reported higher wage bills and raw material costs, driving inflation.
The PMI survey covers agriculture, mining, manufacturing, construction, wholesale, retail, and services sectors.
Experts predict Uganda’s economy will maintain its growth trajectory in the coming months, driven by private sector expansion.
“The ability of businesses to pass costs onto consumers suggests a healthy demand environment,” Madula noted.
The Stanbic PMI is a weighted average of five indices: New Orders, Output, Employment, Suppliers’ Delivery Times, and Stocks of Purchases.
