Uganda’s private sector growth accelerates in Nov. ’24

Uganda’s private sector saw continued growth in November, with the Purchasing Managers’ Index (PMI) rising to 55.7, up from 52.9 in October, marking an eighth consecutive monthly expansion.

The rise in the PMI, which signals improved business conditions, reflected stronger demand, increased output, and a sustained rise in new orders.

The report highlighted broad-based growth across all monitored sectors, supported by new client acquisitions and stronger consumer purchasing power. Firms responded to increased demand by boosting input purchases and stock levels, while suppliers’ delivery times improved. However, employment levels fell for the first time since March 2023, as companies targeted cost controls amid reduced work backlogs.

Operating costs rose further, driven by higher purchase prices for construction materials, food, alongside increased utility and staff costs. Businesses raised selling prices for the third consecutive month, with the exception of construction firms.

Despite input cost pressures and reduced staffing, firms remain optimistic about the economic outlook, citing planned investments and expectations of strong consumer demand in the year ahead.

Stanbic Bank Economist Christopher Legilisho attributed the robust PMI performance to sustained customer demand and a resilient private sector, noting: “Despite a dip in employment, optimism remains strong, supported by plans for investment and anticipated growth in consumer demand.”

Attribution: Stanbic Bank Uganda PMI®

Subediting: M. S. Salama