Three indices point to positive outlook for Ugandan economy
According to the report, the CIEA grew by 0.6 per cent between January and February 2026, reaching 185.6
KAMPALA, April 20, 2026 — Three key indices indicate a positive outlook for Uganda’s economy, according to the latest Performance of the Economy Monthly Report released by the Ministry of Finance, Planning and Economic Development.
“High-frequency indicators of economic activity show a continued strengthening of economic conditions, reflected in an upward trend in the Composite Index of Economic Activity [CIEA] over recent months,” states the report.
According to the report, the CIEA grew by 0.6 per cent between January and February 2026, reaching 185.6. This performance was underpinned by export growth, rising aggregate demand, stable inflation, and steady expansion in private sector credit in the months leading to March 2026.
Meanwhile, the Purchasing Managers’ Index [PMI] was recorded at 54.3 in March 2026, up slightly from 54.2 in the previous month, signalling continued improvement in business conditions within Uganda’s private sector. “Gains were mainly observed in output and new orders, prompting firms to increase purchases of raw materials and expand their workforce, thereby boosting employment,” notes the report.
On the other hand, business sentiment in the country also remained positive, as reflected in the Business Tendency Index [BTI], which stood at 57.83 in March 2026, well above the threshold of 50. This indicates sustained optimism among investors, particularly in the agricultural and financial sectors during the period.
“Despite rising fuel costs, annual headline inflation eased to 2.8 per cent in March 2026, down from 2.9 per cent in February. This was largely driven by a slowdown in both core inflation and inflation for food crops and related items,” states the report, adding that slower price increases were recorded in restaurants and accommodation, as well as in items such as broiler chicken, sugar, milk and fresh leafy vegetables, among others.
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