Business conditions in Uganda’s private sector strengthened in November, with growth accelerating for the second time in three months, according to the latest survey of purchasing managers.
The Stanbic Bank Uganda Purchasing Managers’ Index rose to 53.8, up from 53.4 in October, marking the tenth consecutive month that the gauge has remained above the 50-point threshold that separates expansion from contraction.
The improvement was driven by sustained growth in new orders and business activity across most sectors, S&P Global said. Companies attributed the expansion to robust customer demand, increased referrals, and an uptick in new client acquisitions.
Output growth was broad-based, with activity levels rising across all monitored sectors. New business also increased across the board, except in construction, where firms reported a decline in order intake.
In response to strengthening demand conditions, firms increased hiring for the tenth consecutive month; the only exception was the construction sector, which reported a decline in hiring. This additional capacity enabled companies to reduce their backlogs of work, although the agriculture and wholesale and retail sectors continued to face mounting workloads.
Input buying and inventory levels both rose as companies prepared for anticipated increases in future output, S&P said. This occurred despite a renewed lengthening of supplier delivery times, which panellists attributed to adverse weather conditions affecting transportation routes.
