By David Mwanje
KAMPALA– Uganda’s private sector continues to shine, with businesses reporting growth for the fifth straight month, according to the latest Stanbic Purchasing Managers’ Index (PMI). The PMI, which tracks business health, slipped slightly to 55.6 in June from 56.4 in May but remained well above the 50.0 mark, showing the economy is still expanding.
The PMI, compiled by S&P Global from surveys of 400 businesses in agriculture, manufacturing, construction, retail, and services, measures five key areas: new orders, output, employment, delivery times, and stock levels. Together, these paint a picture of a bustling economy driven by strong demand and confidence.
The new orders that’s 30% of the PMI grew as businesses reported more customer demand and new clients. This surge in orders shows people are buying more, fueling economic growth. Output(25%) increased as companies ramped up production to meet these orders, with growth seen across all sectors. Then Employment(20%) rose as firms hired both permanent and temporary workers to handle the extra work, signaling optimism about the future.
The PMI shows that Suppliers’ delivery times(15%) got faster, helping businesses get materials quickly and clear work backlogs for the sixth month in a row and Stocks of purchases(10%) grew as companies stocked up on supplies, preparing for more business ahead. These five areas combined to keep the PMI at a healthy 55.6, proving Uganda’s private sector is thriving.
Christopher Legilisho, an economist at Stanbic Bank, said, “Businesses are booming with more orders, output, and jobs. This points to a strong economy in 2025, driven by solid demand across industries.”
Despite rising costs for staff and materials, most businesses kept their prices steady to stay competitive, though agriculture and retail saw slight price hikes. Low inflation at 3.9% in June, supported by a stronger Ugandan shilling and cheaper energy, also helped keep prices in check.
Looking forward, businesses are upbeat, investing in advertising and reaching out to new customers. With more jobs, faster deliveries, and growing stockpiles, Uganda’s private sector is setting the stage for a bright 2025.
