Africa-Press – Uganda. Ugandan companies continued to register robust business activity in August, marking the seventh consecutive month of private sector growth, according to the latest Stanbic Bank Purchasing Managers’ Index (PMI).
The headline PMI stood at 53.3, slightly down from 53.6 in July, but still well above the neutral 50.0 threshold. This indicates an ongoing improvement in private sector conditions since February 2025.
Christopher Legilisho, Economist at Stanbic Bank Uganda, noted that the PMI data for August confirmed strong economic conditions in the private sector.
He explained that sustained new order and output growth reflect supportive business conditions across all major sectors.
He also highlighted increases in input purchases and inventory levels, while employment conditions remained robust — with the exception of the manufacturing sector, where staffing was unchanged.
The PMI, compiled by S&P Global on behalf of Stanbic Bank, is based on monthly responses from purchasing managers across agriculture, mining, manufacturing, construction, wholesale, retail, and services.
It draws on five key components: new orders, output, employment, supplier delivery times, and stocks of purchases — each weighted according to its significance.
In August, the continued upturn in business activity was driven by stronger demand conditions and another month of new order growth.
Firms also reported increases in output, employment, and inventory levels. Optimism about future business prospects further fueled growth in input purchases and stock-building efforts.
Despite persistent inflationary pressures — including rising costs for inputs, purchases, and labor — the overall Consumer Price Index (CPI) remained unchanged from July.
Businesses, however, were able to pass on these higher costs to customers, leading to another increase in selling prices across most sectors.
New sales rose for the seventh month in a row, attributed largely to successful advertising and marketing campaigns.
Sectoral data indicated that all segments experienced expansions in both output and new orders. To meet rising demand, companies ramped up input purchases and worked to build safety stocks, which helped clear backlogs of work. Vendor performance remained broadly stable on the month.
While some sectors such as agriculture and construction recorded decreases in input prices, output charges increased across the board.
Output expectations among Ugandan firms remained high in August, with many businesses projecting increased activity over the next 12 months. Confidence was largely driven by plans to invest further in client outreach and advertising.
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