Uganda’s business confidence stays strong despite decline in PMI
Despite the decline, the PMI remains above the 50.0 mark, indicating growth in the private sector and economic resilience.
Uganda’s business confidence remains solid, even as the Purchasing Managers’ Index (PMI) dipped slightly to 54.2 in September. Despite the decline, the PMI remains above the 50.0 mark, indicating growth in the private sector and economic resilience.
Driven by effective advertising and strong client demand, Uganda’s business output and new orders continued to rise. “Businesses remain optimistic, planning increased investment in advertising and product development,” said Christopher Legilisho, Economist at Stanbic Bank. “This optimism is also evident in employment growth, with job creation extending for 18 consecutive months.”
However, input costs rose due to higher utility bills and supplier prices. Experts point to Uganda’s strategic location, supportive business environment, and expanding consumer market as key factors behind sustained confidence.
“Uganda’s economy shows resilience amid global challenges,” Legilisho noted. “Diversification, infrastructure investments, and growing regional trade are setting the stage for further growth.”
The Stanbic PMI survey, conducted by S&P Global, gathered data from 400 managers across sectors like agriculture, manufacturing, construction, and services. As Uganda’s economy continues to expand, international investors are increasingly eyeing opportunities in the country.
