Christopher Legilisho, Economist at Stanbic Bank The monthly headline Stanbic Purchasing Managers’ Index (PMI) recorded an upward trend, but input prices for the private sector companies continued to rise as the September reading of 54.0 was an improvement on the 53.3 posted for August.Readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show a deterioration.Christopher Legilisho, Economist at Stanbic Bank said, “Private sector momentum kept the pace in September, with robust consumer demand elevating new orders and output alike. Businesses remain hopeful about future activity, with sales and consumers expected to hold up over the next 12 months. Hiring was sustained, and backlogs broadly unchanged thanks to jobs growth in 2025 thus far.”The latest data signaled an eighth successive monthly improvement in the health of the Ugandan private sector.“However, inflationary pressures remained in September; as purchase prices, wages and output charges rose due to sustained strong consumer demand. PMI data implies that businesses are confident about the economic trajectory, as displayed by their optimism about current and future conditions,” Legilisho said.The Stanbic PMI is a weighted average of the following five indices: New Orders (30%), Output (25%), Employment (20%), Suppliers’ Delivery times (15%) and Stocks of Purchases (10%). The sectors covered by the monthly survey, involving about 400 respondents, include agriculture, mining, manufacturing, construction, wholesale, retail and services.The upturn in output during September, was sustained amid a further rise in new orders. Moreover, greater new sales spurred expansions in purchasing activity and staffing levels, with businesses confident of a rise in output over the coming year.On the price front, purchase and staff costs increased again, pushing up overall input prices once more. Subsequently, firms raised their output charges in a bid to recoup expenditure.Contributing to the overall expansion was a further rise in new business at Ugandan companies in September. The latest upturn extended the current sequence of growth seen since February, with firms attributing the increase to favourable demand conditions and higher customer numbers.Ugandan firms subsequently adjusted their output levels, up at the end of the third quarter, to support greater business requirements.The upturns in output and new orders were broad-based by sector.Firms sought to expand capacity again in September to accommodate increased new order inflows.Consequently, employment and input buying increased further. The rise in staffing numbers was largely due to temporary hires, according to panelists.Nonetheless, backlogs of work were broadly unchanged during the month.Growth in purchasing activity and success in efforts to build safety stocks amid anticipated increases in activity, were aided by a renewed improvement in vendor performance during September.Shorter delivery times for inputs enabled Ugandan firms to record a seventh successive monthly rise in inventory levels.Demand for inputs continued to push up purchase costs, as items including cement and paper products reportedly rose in price in September. Wage bills also increased, in line with greater hiring. Moreover, the uptick in overall input prices was broad-based by sector.At the same time, output charges increased for the thirteenth month running as firms sought to pass-through higher costs to customers.The post Uganda’s Business Conditions Improve Further Ahead Of Festive Season appeared first on Business Focus.