By Namugerwa Martha
Stanbic Bank Purchase Managers Index (PMI) for Uganda indicates that there has been an improvement in private sector business operating conditions in the country following a rise from 52.8 to 54.3 in July.
The index posted above the neutral 50.0 threshold for the sixth consecutive month, supported by expansions in new orders, output, employment and stocks of purchases thus helping a large number of unemployed Ugandans.
While speaking about the main drivers of the PMI’s continued growth Jibran Qureishi, the Regional Economist E.A at Stanbic Bank said that the recent recovery is underpinned by the agriculture sector following the relatively decent long rains.
“government expenditure on public infrastructure projects is likely to support economic activity over the near to medium term therefore the manufacturing and retail sectors are still sluggish but are likely to gradually recover as access to credit improves over the course of the year,” Qureishi said.