Ugandan private sector growth accelerates in February, demand strengthens

Investing.com – According to data released on Wednesday by Stanbic Bank and S&P Global, Uganda’s private sector growth accelerated in February, with the Purchasing Managers’ Index (PMI) rising from 52.6 in January to 54.2.

This reading indicates that the business environment has expanded for the 13th consecutive month.

The improvement was driven by sustained increases in output and new orders, with businesses reporting stronger customer demand and an increase in the number of clients. Business activity has been expanding monthly since February 2025.

During February, Ugandan companies continued to see growth in new business inflows, with widespread increases in output and new orders across all monitored sectors.

Employment levels rose again this month as companies hired more staff to handle increased workloads. All five sectors tracked in the survey reported higher employment. The ongoing growth in new orders led to a rise in backlogs of work.

Ugandan firms remained optimistic about output prospects in February. Businesses expect customer demand to stay strong and plan to invest in advertising campaigns.

Purchasing of inputs further expanded this month, supported by the increase in new orders. Companies have been building up inventories for 12 consecutive months, expecting activity to grow over the next year. Increased competition among suppliers has shortened delivery times, and supplier performance has improved.

In terms of costs, overall expenses increased due to rising purchase prices and wage expenditures. Firms reported higher employee incentive pay, utility costs, and material prices including pharmaceuticals, metals, and cement. To cope with rising costs, companies raised their selling prices.

This article was translated with the assistance of artificial intelligence. For more information, please see our Terms of Use.