Uganda’s private sector continued to grow last month amidst several economic challenges, the Stanbic Purchasing Managers’ Index for June indicates. The index dipped from 54.1 in May to 51.9 in June.
According to a release, Christopher Legilisho, an economist at Stanbic Bank said the private sector was showing signs of resilience
“The strong demand conditions are driving output and employment growth, and businesses are optimistic about the future,” he added.
The survey found that output and new orders increased for the third consecutive month, driven by healthy consumer demand, referrals, and newly acquired clients. Companies also expanded their staffing levels for the fifteenth month in a row, with both part-time and full-time workers being hired to meet growing demand.
“The growth in output and new orders is a testament to the strength of the private sector in Uganda,” said Legilisho. “Despite the challenges posed by rising costs, businesses are confident about their future prospects and are investing in their operations to meet growing demand.”
The index also found that input prices rose for the third consecutive month, driven by hikes in utility bills, rent, materials, and staff expenses. However, businesses were able to pass on some of these costs to consumers, with output prices also increasing.
The index found that optimism about future output was broad-based across all five monitored sectors, with firms expecting stronger demand conditions and further growth in new business.
“The outlook for the private sector in Uganda is positive, with businesses expecting further growth in output and new orders,” said Legilisho.
“This is a testament to the strength of the economy and the resilience of the private sector.”
