According to a survey performed by Stanbic Bank, this information
Some sectors do, however, nevertheless exhibit some stability since their performance indicator still scores above 50, indicating stability.
A Stanbic Bank survey indicates that the contraction of Uganda’s agriculture, building, and manufacturing sectors had an effect on economic performance in February.
The Purchasing Managers’ Index decreased to 51.2 in February from 53.2 in January, according the survey, which uses interviews with business executives and purchasing managers to assess the monthly state of the economy. Notwithstanding the downturn, the private sector had more output and more new orders.
An indicator below 50 indicates a decline in growth, but the indicator is still over 50, which indicates stability. The survey also revealed a decline in employment for the first time in five months, even though reports of the unusually dry weather were frequently highlighted as a major development impediment throughout the month. The poll, according to Standard Bank analyst Ms. Mulalo Madula, demonstrated steady economic performance over a seven-month period.
“New orders continued to rise, supporting output, despite a second straight month of declines in new export orders and increases in input and output prices. Activity increased in the services, wholesale and retail sectors, but decreased in agriculture, construction, and industry,” she said.
“Businesses are optimistic that production will pick up over the next 12 months given increased demand, lower inflationary pressures, and expected rainfall,” she added.
The study also revealed rising input costs for things like power and water, which would have affected commodities prices, which rose for the 18th consecutive month.
The construction and services sectors saw a reduction in charges, while the wholesale, retail, and agricultural sectors saw an increase. At the same time, suppliers’ delivery times increased for the third time in four months. At that time, businesses took advantage of the increase in new orders to increase purchasing activity, which increased for a fourth month.
Yet, the survey discovered that companies remain optimistic, with close to 68% of respondents projecting a rise supported by rising clientele, lowering inflationary pressures, and the outlook
