Private sector activity slowed in January, according to a survey of private sector purchasing managers.
The Stanbic Bank Uganda purchasing manager’s index, published on Monday, reported a decline in activity growth, the first in three months. The PMI dropped to 54 in January, compared to 54.8 in the previous month.
A PMI reading above 50 indicates expansion in business activity, while a reading below 50 signals a deterioration.
S&P Global, the global research firm that compiles the report, said that of the six sectors monitored, five, except for mining, saw an increase in activity.
Overall, the survey attributed the expansion in activity to rising customer numbers, leading to an increase in output and new orders for the eighteenth consecutive month.
Businesses increased their purchasing activity and stocks of inputs. They also reported an increase in input costs, driven by food prices and construction materials.
However, staff costs fell for the first time in 17 months. Hiring of mostly temporary staff rose marginally for the tenth consecutive month.
Output prices increased across the board, although the majority of firms reported keeping their prices unchanged.
