KAMPALA – Despite a slight decline in the Purchasing Managers’ Index (PMI) to 54.2 in September, Uganda’s business confidence remains robust, signaling continued economic growth.
The PMI, a key indicator of business conditions, remains above the 50.0 threshold, underscoring the resilience of Uganda’s private sector. Effective advertising and robust client demand drove strong business output and new order growth.
“Businesses are optimistic about future prospects, with plans to increase investment in advertising and new products,” said Christopher Legilisho, Economist at Stanbic Bank. “This confidence is reflected in the expansion of employment numbers, extending the current sequence of job creation to a year-and-a-half.”
Uganda’s PMI remains above 50.0, indicating continued economic growth. Business output and new orders were driven by robust client demand and effective advertising, while employment numbers expanded as businesses expressed confidence in future prospects.
However, input costs rose due to higher utility bills and supplier prices. Experts attribute the sustained business confidence to Uganda’s strategic location, favorable business environment, and growing consumer market.
“Uganda’s economy has demonstrated remarkable resilience in the face of global economic uncertainty,” said Legilisho. “The country’s diversification efforts, investment in infrastructure, and growing regional trade position it for continued growth.”
The Stanbic PMI survey, conducted by S&P Global, polled 400 purchasing managers across Uganda’s agriculture, mining, manufacturing, construction, wholesale, retail, and services sectors.
As Uganda’s economy continues to grow, international investors and businesses are taking notice of the country’s potential.
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