September Stanbic PMI reveals sustained consumer demand

What the report says

Stanbic Bank Uganda’s latest Purchasing Managers’ Index pointed to continued resilience in Uganda’s private sector during September, according to The Independent Uganda. The survey, compiled by S&P Global and covering agriculture, mining, manufacturing, construction, wholesale, retail and services, found that businesses across the monitored sectors remained optimistic, helped by advertising efforts and improvements in product quality that were said to support consumer confidence.

The headline PMI eased to 53.0 in September from 55.0 in August, but stayed above the 50-point threshold that indicates improving business conditions. The report said output and new orders kept expanding, suggesting sustained demand from customers. Stanbic economist Christopher Legilisho said the reading remained in expansionary territory, though he noted that firms were seeing growing pressure on capacity and working capital because of stronger demand and delayed payments.

The article said new business was supported by promotional activity and broad-based growth in orders, although agriculture and wholesale and retail recorded weaker output. Companies also reported higher input costs tied to transport, logistics, fuel and utilities, and many responded by increasing purchases and building inventories. Employment rose in September, while backlogs of work increased for a fourth straight month.

The report matters because it suggests Ugandan firms were still seeing solid demand even as cost pressures and supply-chain delays intensified, a combination that can affect prices, hiring and short-term business planning.