Investing.com -- Uganda’s private sector recorded stronger growth in April as the Stanbic Bank Uganda PMI rose to 55.0 from 54.3 in March, according to data released Wednesday by S&P Global.
The reading marked the fifteenth consecutive month of expansion in new business and sustained growth in business activity since February 2025. Output levels increased due to greater customer demand and new orders, with growth broad-based across sectors.
Employment expanded during the month as firms hired mostly casual workers to handle rising backlogs. Companies also increased input buying and continued building stocks in anticipation of higher client demand.
Input costs rose in April, driven primarily by higher fuel and transportation prices. Purchase prices increased while wage bills remained broadly stable. Firms passed cost increases to customers through higher selling prices, though services companies reduced output charges.
"Total input costs, purchase prices and output charges increased due to higher fuel prices and transportation costs," said Christopher Legilisho, economist at Stanbic Bank. He noted that the data reflected the impact of the war in Iran on domestic operating conditions.
Vendor performance improved during the month, allowing companies to build inventory levels. Backlogs accumulated for the third consecutive month as new orders grew.
Firms remained optimistic about output growth over the coming year, citing planned investments, sustained customer demand, and expectations that fuel prices will ease.
The PMI survey covers around 400 private sector companies across agriculture, mining, manufacturing, construction, wholesale, retail and services sectors. Data were collected from April 9-28.
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