Ugandan private sector sees back-to-back growth in March

KAMPALA, Uganda — Uganda’s private sector saw its second consecutive month of growth in March, driven by strong demand conditions and increased input buying.

The Stanbic Purchasing Managers’ Index (PMI) rose to 52.9 in March from 52.6 in February, indicating a sustained improvement in business conditions.

The survey, compiled by S&P Global, showed growth in output, new orders and employment, with all five monitored sectors — agriculture, mining, manufacturing, construction and services — recording increased business activity.

Christopher Legilisho, economist at Stanbic Bank, said the growth was driven by sound consumer demand and optimism about the economic outlook.

“Firms remained upbeat about the prospects for output over the coming year, with hopes of further improvements to the sales environment and new client wins,” Legilisho said.

However, the survey also noted increased inflationary pressures, with higher purchase and staff costs driving up overall input prices. Companies responded by raising their output charges for the seventh consecutive month.

The survey is based on responses from about 400 purchasing managers and is a weighted average of five indices: new orders, output, employment, suppliers’ delivery times and stocks of purchases.

Readings above 50.0 signal an improvement in business conditions, while readings below 50.0 indicate deterioration.