Mulalo Madula, Senior Analyst at Stanbic Bank
KAMPALA, Uganda — Uganda’s economy continued to show signs of growth, with the Stanbic Purchasing Managers’ Index (PMI) rising to 52.9 in October.
“The latest PMI data for Uganda indicated a sustained expansion in the Ugandan private sector, driven by increased demand and hiring,” said Mulalo Madula, senior analyst at Stanbic Bank. “This growth momentum is a positive indicator for the economy.”
New orders and output rose, fueled by rising demand, leading to sustained employment growth. Firms hired additional staff to meet the increased workload.
“Businesses have been able to pass on higher costs to consumers, which suggests a healthy demand environment,” Madula noted.
However, businesses reported higher wage bills and raw material costs, driving inflation.
“The October PMI results underscore the resilience of the Ugandan economy, with businesses benefiting from buoyant demand,” said Ronald Muhinda, Manager, Research and Market Development at Uganda Manufacturers Association. “The sustained increase in output is encouraging, and firms are optimistic about future growth.”
“The PMI reading of 52.9 is a welcome sign, indicating that the private sector is driving economic growth,” added Stephen Kaboyo, an independent economic analyst.
The PMI survey covers agriculture, mining, manufacturing, construction, wholesale, retail and services sectors.
Experts predict Uganda’s economy will maintain its growth trajectory in the coming months.
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