Kampala, Uganda | THE INDEPENDENT | Uganda’s private sector reported a continued growth of new orders running into the fourth month at the end of July marking the start of the third quarter. The upturn was widespread across all five monitored sectors, with firms linking the expansion to new client wins.
The headline Stanbic Purchasing Managers’ Index (PMI), which tracks Uganda’s private sector operating conditions, rebounded to 53.7 during July from the dip of 51.9 posted for June after a high of 54.1 recorded in May. Readings above the threshold 50.0 mean a generally positive outlook.
Christopher Legilisho, Economist at Stanbic Bank said, “The July PMI revealed a robust private sector economy performance. For the fourth month now, surveyed firms have indicated strong output and new orders, linked to strong client demand conditions across all economic sectors in July, with firms upbeat about client demand conditions persisting over the next 12 months. Firms have therefore increased employment, input buying and stocks of raw materials to support increased workloads from higher output and new customer orders.”
According to the latest survey, optimism in the outlook for output over the coming year was also recorded, as firms raised their workforce numbers again in line with upbeat growth forecasts and greater new sales. At the same time, input buying increased amid efforts to stockpile materials. Shorter lead times for inputs aided such efforts. However overall input prices rose again following hikes in both staff and purchase costs. Selling prices were also raised further.