Uganda's business sector saw another month of growth but the pace slowed down during June. The Stanbic Bank survey showed private companies continued expanding for five straight months. Business conditions improved again as the index stayed above the crucial 50 point mark. The reading dropped from 56.4 points in May to 55.6 points last month. Companies kept hiring workers and buying more supplies despite the small decline.
Christopher Legilisho from Stanbic Bank expects the economy to grow strongly next year. He pointed to healthy demand across most business sectors as the main reason. Companies received more new orders and produced more goods to meet customer needs. Employment levels rose as firms hired both temporary and permanent staff members. The positive trends suggest Uganda's GDP will perform well throughout 2025.
Businesses faced higher costs for materials and worker wages during June. Fuel prices and raw material expenses pushed up company spending again. Construction firms were the exception as their costs actually fell last month. Companies mostly kept their selling prices unchanged despite paying more for inputs. Agriculture and retail sectors were the exceptions that raised prices for customers.
Delivery times for supplies got faster and companies reduced their backlog of unfinished work. Firms bought more inventory and materials to prepare for future demand. Business leaders expressed confidence about the coming year and plan to invest in advertising. The survey covers 400 purchasing managers from agriculture, mining, manufacturing, construction, wholesale, retail and service companies across Uganda.
Christopher Legilisho from Stanbic Bank expects the economy to grow strongly next year. He pointed to healthy demand across most business sectors as the main reason. Companies received more new orders and produced more goods to meet customer needs. Employment levels rose as firms hired both temporary and permanent staff members. The positive trends suggest Uganda's GDP will perform well throughout 2025.
Businesses faced higher costs for materials and worker wages during June. Fuel prices and raw material expenses pushed up company spending again. Construction firms were the exception as their costs actually fell last month. Companies mostly kept their selling prices unchanged despite paying more for inputs. Agriculture and retail sectors were the exceptions that raised prices for customers.
Delivery times for supplies got faster and companies reduced their backlog of unfinished work. Firms bought more inventory and materials to prepare for future demand. Business leaders expressed confidence about the coming year and plan to invest in advertising. The survey covers 400 purchasing managers from agriculture, mining, manufacturing, construction, wholesale, retail and service companies across Uganda.
