Overview:
Uganda's private sector grew for a seventh consecutive month in August, driven by increased business activity and new orders.
KAMPALA, Uganda — Uganda’s private sector saw continued growth in August, extending an upturn in business activity and new orders for a seventh consecutive month, according to the latest Purchasing Managers’ Index.
The Stanbic Bank PMI, which measures the health of the private sector, registered at 53.3 in August. While this was a slight drop from 53.6 in July, it remained above the 50.0 threshold that separates growth from contraction.
Christopher Legilisho, an economist at Stanbic Bank, said the PMI reflects “ongoing strong economic conditions in the private sector.”
“Sustained new order and output growth imply business conditions were supportive across all sectors,” he said. “Meanwhile, companies were still optimistic about future output.”
According to the index, all sectors—including agriculture, mining, manufacturing, construction, wholesale, retail and services—reported expansions in both output and new orders. Companies attributed the growth to stronger demand and successful marketing campaigns.
Employment also rose, except in the manufacturing sector where staffing numbers were unchanged. Increases in both purchase and staff costs led to higher input prices, which businesses largely passed on to customers through increased selling prices.
The PMI is compiled by S&P Global on behalf of Stanbic Bank Uganda. It is based on responses from purchasing managers in the various sectors.