Overview:
The survey found that output and new orders increased for the third consecutive month, driven by healthy consumer demand, referrals, and newly acquired clients.
Despite increasing utility, rent, material, and staff costs, Uganda’s private sector continues to thrive, according to the latest Stanbic Purchasing Managers’ Index (PMI). The PMI dipped from 54.1 in May to 51.9 in June, indicating continued growth but at a slower pace.
According to Christopher Legilisho, Economist at Stanbic Bank, “The private sector in Uganda is showing remarkable resilience in the face of rising costs. Strong demand conditions are driving output and employment growth, and businesses are optimistic about the future.”
The survey found that output and new orders increased for the third consecutive month, driven by healthy consumer demand, referrals, and newly acquired clients. Companies also expanded their staffing levels for the fifteenth month in a row, with both part-time and full-time workers being hired to meet growing demand.
While input prices rose for the third consecutive month, businesses were able to pass on some of these costs to consumers, with output prices also increasing. Despite the challenges posed by rising costs, businesses in Uganda are optimistic about their prospects, with firms expecting stronger demand conditions and further growth in new business.
“The outlook for the private sector in Uganda is positive, with businesses expecting further growth in output and new orders,” said Legilisho. “This is a testament to the strength of the economy and the resilience of the private sector.”