By THE INDEPENDENT UG
Kampala, Uganda | THE INDEPENDENT | Uganda’s private sector experienced a modest deceleration in growth in Feb, as indicated by the Stanbic Purchasing Managers’ Index (PMI) which adjusted to 51.7 from a previous 54.0 in January.
Despite this slight easing, the sector continued to demonstrate robust performance with sustained improvements across several key indicators.
Christopher Legilisho, Economist at Stanbic Bank, said: “Even though we observed a marginal softening in the pace of private sector activity in February, the underlying strength of Uganda’s economic activity remains evident. This is highlighted by continued growth in output and new orders for the 19th consecutive month, fueled by increased customer demand.”
The report further detailed that business expansion was buoyed by an influx of new clients, contributing to the rise in output which was seen across four of the five sectors surveyed, with agriculture being the exception.
Notably, February saw an uptick in employment as companies strived to manage work backlogs, which have been decreasing for two consecutive months.
While purchasing activity continued to rise in February, there was a noted decrease in stocks of purchases for the first time in three months, influenced by sector-specific trends in inventory management.
Input costs experienced upward pressure primarily due to increased prices for fuel, materials, and utilities, prompting businesses to adjust their selling prices accordingly.
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