After dropping to a seven-month low in January, largely due to uncertainty about the general elections, activity in Uganda’s private sector improved in February and March. The Stanbic Bank Uganda Purchasing Managers’ Index — a widely watched measure of business sentiment rose to 51.2 in February, up from 49.8 in January.
The improvement in business conditions was attributed to the end of the election season and preparations for a wider reopening of schools. Activities increased in the agriculture and industrial sectors but declined elsewhere, according to a report from IHS Markit, the research firm that conducted the survey.
New orders and employment both returned to growth. The latter reversing a two-month decline, while output improved for the eighth straight month. Purchasing activity at firms also rose for the first time in three months.
The survey was carried out on 400 private sector companies drawn from the agriculture, mining, manufacturing, construction, wholesale, retail, and services sectors.
The measured data are new orders, output, employment, suppliers’ delivery times, and stocks of purchases. Proper and adequate analysis of the data collected showed that there is an overall improvement in the country’s business activity.
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