Uganda’s private sector activity rose in November, powered by higher output, employment and stocks of purchase.
The Markit Stanbic Bank Uganda Purchasing Managers’ x™ (PMI™) rose to 54.9 in November, compared with 52.8 from the month before. A reading above 50 indicates an overall increase, whereas below 50 indicates an overall decrease.
“Business conditions continued to improve in the month of November, buoyed mainly by rising new orders which boosted output to its highest level since October 2016,” said Jibran Qureishi, the Stanbic Bank economist for East Africa.
Qureishi also pointed out the importance of political stability in Kenya, that will see a rise in new orders and output in the coming months. President Kenyatta was sworn in last week bringing an end to months of political uncertainty in the region.
“In addition, stable macroeconomic conditions with subsiding inflation should also continue to bode well for Uganda’s private sector.”
The rise in output has been linked to higher volume of new orders, particularly an increase in advertising and promotional activity. New orders from abroad also increased – no doubt due to increase in quality of products, making it the second increase in such orders in the last 18 months.
Workforce numbers also expanded, as employers sought top meet the high demand.