Uganda Private Sector Growth Strongest in Over a Year

The Stanbic Bank Uganda PMI rose to 56.3 in August 2024, up from 53.7 in July, marking the fifth consecutive month of expansion and the strongest growth since June 2023.

New orders grew for the fifth consecutive month, buoyed by new client acquisitions and strong demand conditions.

Subsequently, output expanded further, with growth seen across all five sectors.

Additionally, employment increased for the seventeenth month in a row.

However, pressure on capacity built up as backlogs of work rose for the first time in eight months.

Cost burdens continued to rise amid hikes in both purchase prices and wage bills.

Meanwhile, selling prices fell for the first time in nearly 1-½ years as companies sought to remain competitive.

Despite the uptick in cost burdens, companies increased their input buying, as supplier delivery times were shortened again.

Finally, firms remained upbeat about the outlook for output on hopes of further increases in new orders and planned investment in advertising.