Close Menu
Prime NewsPrime News
  • NEWS
  • CONSERVATION
  • ENVIRONMENT
  • POLLY’S ESCAPEDES
  • TRAVEL & DESTINATIONS
  • TOURISM
  • OTHERS
What's Hot

Cultural Relics Repatriated from Cambridge in 2024 Exhibited at POATE

May 23, 2025

POATE a Gateway to Uganda, East Africa – President Museveni

May 21, 2025

$50 Billion by 2040: Tourism Leans on Museums for Product Diversification

May 18, 2025
Facebook X (Twitter) Instagram YouTube WhatsApp TikTok
Trending
  • Cultural Relics Repatriated from Cambridge in 2024 Exhibited at POATE
  • POATE a Gateway to Uganda, East Africa – President Museveni
  • $50 Billion by 2040: Tourism Leans on Museums for Product Diversification
  • Explore Kigezi: 10 Stunning Attractions You Can’t Miss
  • Why Female Entrepreneurs in Tourism Should Embrace POATE
  • Kalangala Getaway: In the Eyes of a Budget Traveler
  • After POATE 2024’s Resounding Success, Will Edition 9 Measure Up?
  • Sustainability in Hospitality: Inside Kaara Gorilla Mountain Lodge
Facebook X (Twitter) WhatsApp
Prime NewsPrime News
  • NEWS
  • CONSERVATION
  • ENVIRONMENT
  • POLLY’S ESCAPEDES
  • TRAVEL & DESTINATIONS
  • TOURISM
  • OTHERS
Prime NewsPrime News
Home » News » Stanbic PMI Shows Fifth Successive Rise In Output At End Of 2022
Uncategorized

Stanbic PMI Shows Fifth Successive Rise In Output At End Of 2022

By Sharon KyatusiimireJanuary 6, 2023No Comments
Facebook Twitter
Share
Facebook Twitter Email WhatsApp

The Ugandan private sector ended 2022 on a positive note, with ongoing expansions in output, new orders and employment recorded, according to the latest Stanbic Purchasing Managers’ Index released today. 

At 52.0 in December, the headline PMI was up from 50.9 in November and above the 50.0 no-change mark for the second month running.

The reading therefore signalled a sustained improvement in the health of the Ugandan private sector, despite coming in just below the series average of 52.4.

Central to the latest improvement in business conditions was strengthening customer demand, which fed through to growth of new orders and output.

In both cases, expansions were registered for the fifth month running.

Mulalo Madula, Economist at Standard Bank said, “Private sector activity picked up again in Uganda in December, extending the current growth sequence to five months. Production increased in the agriculture, industry, and services sectors, but decreased in construction and wholesale & retail. Price pressures remain high, largely due to the continued pass-through of electricity, fuel, and raw materials costs.”

Madula added that the suppliers’ delivery time increased in December, anecdotally associated with heavy rains and high prices. However, in the short to medium term, Madula added, “we may see some positive signs, such as easing supply chain tensions making us less anxious than we were a few months ago when concerns about energy prices peaked.”

According to the Index, improved sentiment should encourage firms to increase planned investments and contribute to spending on newly produced goods and services. However, weaker external demand conditions and lagged slowdown in domestic demand owing to monetary tightening pose downside risks, according to the Index. 

Companies expand 

In the period under review, companies again expanded their operating capacity in response to greater new orders, raising employment for the third month running – thus helping firms to reduce backlogs of work.

Rising workforce numbers meant that staff costs continued to increase, the fourth month running in which this has been the case.

Firms also faced higher costs for purchases, with raw materials including cement reportedly up in price. 

Purchasing activity expanded for the second month running in response to higher new orders. Stocks of inputs were also up for the second month in a row, in part due to positive expectations for the coming year (2023).

Meanwhile, suppliers’ delivery times lengthened, with panellists reporting delays linked to heavy rains and price pressures. Vendor performance has deteriorated in five of the past six months.

Overall, according to the index, companies were optimistic about the outlook for business activity in the coming year. Approx.74% of respondents expect production to increase during 2023.

The survey, which covers 400 private sector companies, is sponsored by Stanbic Bank and produced by S&P Global, has been conducted since June 2016 and covers the agriculture, industry, construction, wholesale and retail and service sectors.

The headline figure derived from the survey is the Purchasing Managers’ IndexTM (PMITM). Readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show a deterioration.

The PMI is a composite index, calculated as a weighted average of five individual sub-components including, New Orders (30%), Output (25%), Employment (20%), Suppliers’ Delivery Times (15%) and Stocks of Purchases (10%).

Related

Share. Facebook Twitter WhatsApp Email
Sharon Kyatusiimire

Related Posts

African Agroecology Stakeholders Launch ‘My Food is African’ Campaign

March 2, 2024

GAYO Uganda Trains 34 Youth on Climate Policy  

December 5, 2023

Government Urged to Open Markets for Agro-Ecological Foods

December 1, 2023

Leave A Reply Cancel Reply

Our Picks

Cultural Relics Repatriated from Cambridge in 2024 Exhibited at POATE

May 23, 2025

POATE a Gateway to Uganda, East Africa – President Museveni

May 21, 2025

$50 Billion by 2040: Tourism Leans on Museums for Product Diversification

May 18, 2025

Explore Kigezi: 10 Stunning Attractions You Can’t Miss

May 14, 2025
Stay In Touch
  • Facebook
  • Twitter
  • WhatsApp
Don't Miss
NEWS

Cultural Relics Repatriated from Cambridge in 2024 Exhibited at POATE

By Patience NatukundaMay 23, 20250

The Department of Museums and Monuments under the Ministry of Tourism, Wildlife and Antiquities is,…

POATE a Gateway to Uganda, East Africa – President Museveni

May 21, 2025

$50 Billion by 2040: Tourism Leans on Museums for Product Diversification

May 18, 2025

Explore Kigezi: 10 Stunning Attractions You Can’t Miss

May 14, 2025
About Us
About Us

Prime News Uganda is a news website focusing on all things tourism, travel, conservation, environment and adventure - personal travel experiences live here.

Email Us: patience@primenews.co.ug
Contact: +256-782682198

Facebook X (Twitter) Instagram WhatsApp
Our Picks

Cultural Relics Repatriated from Cambridge in 2024 Exhibited at POATE

May 23, 2025

POATE a Gateway to Uganda, East Africa – President Museveni

May 21, 2025

$50 Billion by 2040: Tourism Leans on Museums for Product Diversification

May 18, 2025
  • Facebook
  • Twitter
  • WhatsApp

Recent Comments

  1. Patience Natukunda on Explore Kigezi: 10 Stunning Attractions You Can’t Miss
  2. Patience Natukunda on Explore Kigezi: 10 Stunning Attractions You Can’t Miss
  3. Dhabuliwo Anord on Explore Kigezi: 10 Stunning Attractions You Can’t Miss
  4. Mugisha Muhamud Ashiraf on Explore Kigezi: 10 Stunning Attractions You Can’t Miss
  5. Patience Natukunda on Sustainability in Hospitality: Inside Kaara Gorilla Mountain Lodge

Type above and press Enter to search. Press Esc to cancel.

You cannot print contents of this website.