The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | THE INDEPENDENT | The first quarter of the year ended with a largely positive outlook as strengthening customer demand continued to drive improvements in business conditions in the Ugandan private sector, according to the Stanbic Purchase Managers Index for the month of March, released today.
The headline PMI rose to 53.2 in March, from 51.2 in February, and was above the series average of 52.4. Readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show a deterioration.
Despite the increase in output and new orders, companies still recorded a drop in employment, for the second consecutive month.
Mulalo Madula, Economist at Standard Bank said, "Uganda posted its eighth straight month of output growth as domestic demand remained strong on account of some firms offering competitive pricing to attract customers.
In fact, a decrease in selling prices was noted despite input costs continuing to increase for the 20th consecutive month.” Madula added that this was met by increased purchasing activity and longer lead times due to higher costs and heavy rains affecting transportation.
Central to the latest strengthening of business conditions were continued improvements in output and new orders, both of which increased for the eighth month running in March. Respondents reported increased customer numbers amid improving demand and stable economic conditions with business activity rising across each of the agriculture, construction, industry, services, and wholesale & retail sectors.
