Uganda’s private sector closed 2025 on a positive footing supported by steady business activity and rising confidence about growth prospects in the year ahead, according to the latest Stanbic Purchasing Managers’ Index.
The Stanbic PMI which tracks business conditions across key sectors including manufacturing, services, construction and trade, remained above the 50 point mark at the end of the year, a level that signals continued expansion in private sector activity.
Businesses surveyed reported stable demand and an increase in new orders, allowing firms to maintain output levels despite ongoing cost pressures. Improved cash flows and better planning conditions were cited as factors helping companies manage operational challenges experienced earlier in the year.
Employment conditions showed signs of gradual improvement, with some firms adjusting staffing levels to meet workload demands. While hiring remained cautious, many businesses indicated greater willingness to recruit as expectations for future growth strengthened.
Looking ahead to 2026, optimism featured prominently in the survey responses. Firms expressed confidence that sales volumes will rise in the coming months, supported by planned investments, expansion into new markets and increased spending on marketing and distribution.
Although businesses continued to highlight concerns around input costs, exchange rate pressures and operating expenses, the overall sentiment remained positive. Most respondents said they expect economic conditions to improve gradually, creating a more supportive environment for private sector growth.
Economists note that sustained expansion in the PMI is an encouraging signal for the wider economy as private sector performance often reflects underlying trends in consumption, investment and job creation.
As Uganda enters the new year, the Stanbic PMI suggests that businesses are positioning themselves for growth with cautious confidence that improving demand and relative stability will support further expansion through 2026.