Uganda’s private sector continues growth, PMI at 53.1 in Dec ’24

Uganda’s Stanbic Bank PMI for December 2024 stood at 53.1, signaling continued growth in the private sector, despite a slight dip from November’s 55.7. The PMI remained above the neutral 50.0 mark, marking the ninth consecutive month of business expansion.

Growth was driven by increased output and new orders, with businesses securing new customers and expanding across all sectors.

However, employment continued to decline, as companies did not replace departing staff, leading to a rise in work backlogs. Despite this, firms remained optimistic about 2025, citing expectations of strong consumer demand and competitive pricing.

Input costs and output prices continued to climb, driven by higher material costs, including timber, foodstuff, and paper products.

Companies passed on these increased costs to customers, resulting in higher output prices for the fourth month in a row. Meanwhile, staffing costs remained stable as wage increases were offset by reduced employment.

Overall, businesses are confident in the economic outlook, supported by planned investments and anticipated growth in customer numbers.

Attribution: Amwal Al Ghad English

Subediting: Y.Yasser