Uganda’s private sector activity expanded for the seventh consecutive month in August, though rising prices continue to squeeze businesses, the latest Stanbic Bank Uganda Purchasing Managers’ Index (PMI) has shown.
The survey placed the headline PMI at 53.3, slightly down from 53.6 in July but still above the 50.0 mark that separates growth from contraction.
According to the report, firms in agriculture, manufacturing, construction, wholesale, retail, and services all registered higher output and new orders. Employment and purchasing activity also rose as companies responded to stronger demand.
However, inflationary pressures remained a key concern. Businesses cited higher costs for fuel, raw materials, and labour. Many firms raised their selling prices to protect margins, pushing some of the burden onto consumers.
Despite the cost challenges, the outlook remains broadly positive. Companies expect further growth in output, supported by planned investments in marketing and stock-building. Analysts warn, however, that persistent inflation and external shocks could slow momentum in the months ahead.
The PMI report underscores the resilience of Uganda’s private sector but highlights the policy challenge of sustaining growth while containing rising prices.