Investing.com -- Uganda’s private sector continued to expand in March, with the Purchasing Managers’ Index rising to 54.3 from 54.2 in February, marking the fourteenth consecutive month of improvement in business conditions.
The latest Stanbic Bank Uganda PMI data showed continued growth in output and new orders, driven by favorable demand conditions. Companies reported greater customer numbers and increased client purchasing power, with growth remaining broad-based across sectors.
Ugandan businesses expanded their workforce during March, with many firms hiring temporary workers to support capacity. Backlogs of work rose for a second consecutive month amid higher new order inflows.
Input costs increased during the month, with firms reporting higher wage bills from additional recruitment. Fuel and utility costs were identified as key drivers of inflation. Construction was the only sector to record lower purchase prices, while wholesale and retail firms saw a decrease in wage bills.
Companies raised their output charges in March to pass higher costs to clients. Selling prices have now increased monthly for approximately 18 months.
Firms expanded their input buying activity and built safety stocks in anticipation of greater new business, despite a renewed decline in vendor performance.
Christopher Legilisho, Economist at Stanbic Bank, noted that firms are optimistic about output expectations over the next 12 months, despite ongoing conflict in the Middle East. He added that headline inflation was down to 2.8% year-on-year in March, according to the latest release by UBOS.
Data were collected between March 12-27, 2026.
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