Uganda’s Purchasing Managers’ Index (PMI) rose to 52.0 in December 2022 from 50.9 registered in November 2022, a new survey has said.
The threshold of 50 is a baseline to indicate an increase or a decline in business conditions.
The report, issued by Stanbic Bank Uganda on Wednesday, attributed the increase to the strengthening customer demand, which fed through to the growth of new orders and output.
The survey indicated that business managers were optimistic that the improvement in the PMI sentiment will encourage firms to increase planned investments and contribute to spending on newly produced goods and services.
It however said that weaker external demand conditions and lagged slowdown in domestic demand owing to monetary tightening, pose downside risks.
The survey showed that companies again expanded their operating capacity in response to greater new orders, raising employment for the third month running, thus helping firms to reduce backlogs of work.
The survey said companies were optimistic about the outlook for business activity in the coming year. The report states that approximately 74 percent of respondents expect production to increase during 2023. Enditem