Uganda's economy kept grinding, but the wheels are getting hot. New figures showed business activity grew again in December, marking a full year of expansion, but hiring froze completely after ten straight months of gains. The Stanbic PMI ticked up to 54.0 from 53.8. Everything costs more for companies, especially water, power, and construction materials.
Firms just passed those expenses to customers because demand stayed strong. People kept buying stuff through the holiday season. Output and new orders climbed for the eleventh month running. Backlogs of work piled up since staffing levels basically flatlined.
Their economist noted the private sector was still upbeat. Consumer demand drove the whole engine. With orders mounting, businesses bought more inputs and tried to stockpile inventory. Supplier delivery times slowed down, a sign of mounting pressure.
The report covers purchasing managers across the board, from farmers to shopkeepers. The index weighs new orders most heavily, then output and employment. Even with higher purchase prices, wage costs did not really move. Companies raised their own selling prices without much pushback.
Temporary workers filled some gaps. Permanent hiring stalled. This mismatch between more work and static payrolls created those increased backlogs. Sugar costs were specifically named as a problem.
Looking ahead, businesses are pretty hopeful for 2026. Plans for more advertising and customer outreach fuel the optimism. The expectation is for stronger demand to keep things rolling. The overall read suggests a brisk economy, pending official growth data.
Firms just passed those expenses to customers because demand stayed strong. People kept buying stuff through the holiday season. Output and new orders climbed for the eleventh month running. Backlogs of work piled up since staffing levels basically flatlined.
Their economist noted the private sector was still upbeat. Consumer demand drove the whole engine. With orders mounting, businesses bought more inputs and tried to stockpile inventory. Supplier delivery times slowed down, a sign of mounting pressure.
The report covers purchasing managers across the board, from farmers to shopkeepers. The index weighs new orders most heavily, then output and employment. Even with higher purchase prices, wage costs did not really move. Companies raised their own selling prices without much pushback.
Temporary workers filled some gaps. Permanent hiring stalled. This mismatch between more work and static payrolls created those increased backlogs. Sugar costs were specifically named as a problem.
Looking ahead, businesses are pretty hopeful for 2026. Plans for more advertising and customer outreach fuel the optimism. The expectation is for stronger demand to keep things rolling. The overall read suggests a brisk economy, pending official growth data.
