Uganda’s Purchasing Managers’ Index (PMI) — a key gauge of manufacturing activity –dropped to 51.5 in May from 53.9 recorded in April this year, said a new report issued here Tuesday.
A reading above 50 indicates expansion, while a reading below 50 reflects contraction.
The monthly report issued by Stanbic Bank Uganda attributed the drop to the increase in fuel prices which contributed to negative business operations.
“Overall input costs continued to rise in May, with higher fuel prices central to inflation. Increasing costs for a range of raw materials were also cited, while wages were up for the fifth month running,” the report said.
During the period, selling prices continued to rise as companies responded to higher input costs. Output increased in the industry, services, and wholesale and retail sectors, but decreased in agriculture and construction.
The report indicated that firms remain optimistic in the outlook for the next 12 months, with positive sentiment based on predictions of new orders growth and hopes for alleviation of price pressures. Enditem