Business conditions in Uganda strengthened for the first time in four months in September, according to a closely watched survey of purchasing managers.
The Stanbic Bank Uganda Purchasing Managers’ Index rose to 54, up from 53.3 in August, and well above the 50-point threshold that signals improving conditions.
S&P Global, which compiles the survey, attributed the uptick to a further rise in new business, driven by “favourable demand conditions” and more customers. That, in turn, led to a rise in output — the eighth increase in as many months.
“The upturns in output and new orders were broad-based by sector,” the report added.
The report further said:
“Firms sought to expand capacity again in September to accommodate increased new order inflows. Consequently, employment and input buying increased further. The rise in staffing numbers was largely due to temporary hires, according to panellists. Nonetheless, backlogs of work were broadly unchanged on the month.”
Purchase and staff costs continued climbing across all sectors, driving up business input prices once more. In response, firms raised output prices for the thirteenth consecutive month, passing higher costs on to customers.
Chistopher Legilisho, economist at Stanbic Bank which sponsors the survey, said that “businesses remain hopeful about future activity, with sales and consumer demand expected to hold up over the next 12 months. PMI data suggests businesses are confident about the economic trajectory, as reflected in their optimism about current and future conditions.”
