Overview:
The Stanbic PMI reports that Uganda's private sector saw its 11th consecutive month of expansion in December 2025. Business leaders are preparing for further growth in the new year through increased marketing and inventory building, even as employment levels remained steady.
KAMPALA, Uganda — Businesses across Uganda are entering 2026 with high expectations for expansion following a strong finish to the year, according to the latest Stanbic Purchasing Managers Index.
The December report showed firms are increasingly upbeat about the coming 11 months. This optimism is fueled by plans for new advertising campaigns and expanded customer outreach, which managers believe will sustain the current momentum in demand.
Conditions in Uganda’s private sector were upbeat as the PMI remained in expansion territory in December, implying that strong consumer demand conditions drove new orders and boosted output, said Christopher Legilisho, an economist at Stanbic Bank.
The index, which measures the health of the private sector, rose to 54.0 in December from 53.8 in November. Any score above 50.0 indicates growth. The latest data marked the 11th straight month of improving business conditions.
This confidence in the new year has already triggered a rise in activity. In December, companies increased their purchases of supplies and worked to build up inventories to ensure they are ready for expected sales growth.
While the outlook is positive, the end of 2025 brought some challenges. Employment levels remained mostly flat in December, ending a 10-month period of job growth. Additionally, businesses faced higher operating costs due to more expensive electricity, water, sugar and construction materials.
Legilisho noted that while input costs are rising, the ability of firms to increase their own selling prices suggests a healthy economy.
The rise in output prices increased due to robust customer demand, Legilisho said. On the whole, this suggests that the economy is performing briskly.
The survey, compiled by S&P Global, tracks about 400 purchasing managers in sectors including agriculture, manufacturing, construction and services.