KAMPALA, October 7, 2026 — Uganda’s private sector maintained its growth momentum in September, although business activity expanded at a slower pace as the Stanbic Purchasing Managers’ Index [PMI] fell to 53.0 from 55.0 in August.
The latest PMI survey, compiled by S&P Global, showed continued growth in output and new orders, with sustained customer demand supporting business activity across the monitored sectors.
Despite the moderation, the September reading remained above the 50.0 mark, indicating an improvement in overall private-sector business conditions. The sector has recorded continuous improvement since February 2025.
Readings above 50.0 signal an improvement in business conditions from the previous month, while readings below 50.0 indicate deterioration.
Christopher Legilisho, an Economist at Stanbic Bank, said the September results showed that demand remained resilient despite growing pressures on businesses.
“The Stanbic Bank Uganda PMI remained firmly in expansionary territory in September, although the headline reading moderated materially relative to its six- and 12-month trends. New orders and output remained resilient, consistent with favourable demand conditions, while employment increased across most sectors except services,” Legilisho said.
“However, rising backlogs driven by stronger demand and payment delays suggest that firms are facing growing capacity and working capital constraints.”
Many firms attributed increased business activity to stronger inflows of new orders and successful advertising campaigns. New sales also increased at the end of the third quarter, with companies reporting that sustained demand and interest generated by promotional activity supported new business.
The monthly Stanbic PMI is based on questionnaires sent to purchasing managers across agriculture, mining, manufacturing, construction, wholesale, retail and services.
The index is a weighted average of five indicators: New Orders [30 percent], Output [25 percent], Employment [20 percent], Suppliers’ Delivery Times [15 percent] and Stocks of Purchases [10 percent].
At sector level, the increase in new orders during September was broad-based, although agriculture and wholesale and retail firms recorded contractions in output.
Legilisho said supply-side pressures intensified during the month as rising transport and logistics costs put additional strain on supply chains.
“Supply-side pressures nevertheless intensified as higher transport and logistics costs strained supply chains. Firms responded by increasing purchasing activity and building inventories in anticipation of sustained demand, providing a buffer against potential disruptions but also increasing exposure to elevated input costs,” he said.
Operating expenses rose during the month, largely due to higher utility, fuel and transportation costs. Firms also reported an increase in wage bills, with higher total input costs recorded across all five monitored sectors.
With demand remaining supportive but input costs rising, firms sought to pass higher operating expenses on to customers by increasing selling prices. Output charges rose in all sectors except construction, where prices declined.
Meanwhile, stronger new orders and signs of mounting capacity pressures prompted Ugandan companies to increase their workforce in September. Firms reported hiring both temporary and permanent employees.
Backlogs of work increased for the fourth consecutive month, with some firms saying delayed payments had hampered their ability to process incoming work.
Purchasing activity also increased in September as firms adjusted their input buying to meet higher business requirements. Some companies built up stocks in anticipation of further growth in new orders in the coming months, pushing inventories higher for the 19th consecutive month.
However, supplier performance deteriorated again during the month, with firms citing international transportation delays and higher fuel costs as key factors behind the worsening delivery times.
https://thecooperator.news/economic-activity-in-uganda-increases-as-bti-pmi-show-positive-outlooks/
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