According to latest Purchase Managers Index for July 2018, the business environment in Uganda shows positive growth.
Recorded at 53.2 recorded in July, the private sector maintained the same positive performance score card that was seen in June and remaining above the average since the survey began in June 2016.
According to the latest statistics released for July, there was a further improvement in business conditions across the Ugandan private sector, reflecting ongoing expansions in output and new orders amid reports of strengthening client demand.
Commenting on July’s survey findings, Jibran Qureishi, Regional Economist E.A at Stanbic Bank said: “Private sector activity remains solid and could further benefit from the ongoing public investment in infrastructure, in addition to the government’s intentions to clear domestic arrears over the course of the fiscal year. Headline inflation however could continue rising over the coming months owing to new tax measures and the lag pass through impact of the weaker exchange rate from May and June. That being said, the aggressive intervention by the Bank Of Uganda (BOU), in addition to rising inflows from foreign portfolio investors has been supportive of the UGX over the past month. Yet, BOU may choose to be pre-emptive in order to mitigate risks of rising inflation expectations and thus a token Central Bank Rate hike is a possibility in the second half of 2018. ”
Central to the latest improvement in operating conditions was a further increase in output amid reports of improving client demand and successful marketing. Stronger demand was also mentioned by those firms that saw a rise in new business, which has now expanded on a monthly basis for a year-and-a-half.
