The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | THE INDEPENDENT | The headline Stanbic Purchasing Managers’ Index (PMI) dipped to 51.2 during February from 53.2 in January as business activity increased in the services and wholesale and retail categories, but decreased in agriculture, construction and industry. However, the Ugandan private sector remained in growth territory at the midway point of the first quarter of 2023, with output and new orders continuing to increase. Less positive were a first reduction in employment in five months and continued price pressures.
Readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show deterioration. The latest reading was lower than the average of 52.4 since the survey began in June 2016.
The Stanbic PMI is compiled by S&P Global from responses to questionnaires sent to purchasing managers in a panel of around 400 private sector companies. The sectors covered by the survey include agriculture, mining, manufacturing, construction, wholesale, retail and services.
Mulalo Madula, Economist at Standard Bank said, “PMI continues to show resilient economic performance in Uganda after seven consecutive months of rising demand. New orders continued to rise, supporting output, despite a second straight month of declines in new export orders and increases in input and output prices.”
Helping to support the overall strengthening in the health of the private sector were sustained by increases in both output and new orders, with successful advertising and improving demand reportedly behind growth. Activity and new orders each rose for the seventh month running in February.
There were some reports, however, of extremely dry weather conditions limiting output growth. Hopes are that rains would come to alleviate these conditions as one of the factors behind an optimistic outlook for the coming year, alongside predictions of higher customer numbers and softer inflation.
Companies remained optimistic that output will increase over the coming year, with close to 68% of respondents predicting a rise.
