Business

April’s business activities in Uganda improve, says new report

The Purchasing Managers Index (PMI) rose to 57.8 in April 2021 from 53.2 reached in March 2021 well above the 50.0-mark threshold and the average of the index (53.0) since the series began in June 2016, says the latest Performance of the Economy Report produced for the month of April.

PMI is an index of the prevailing direction of economic trends in the manufacturing and service sectors. It consists of a diffusion index that summarizes whether market conditions, as viewed by purchasing managers, are expanding, staying the same, or contracting. The purpose of the PMI is to provide information about current and future business conditions to company decision makers, analysts, and investors.

April’s PMI improvement signifies a third successive monthly improvement in business conditions as both new orders and output increased across each of the five broad sectors covered by the survey. This is attributed to a rise in consumer demand amid normal operating conditions which enabled companies to expand business activity in April 2021.

Meanwhile, the Composite Index of Economic Activity (CIEA) was recorded at 143.4 in March 2021 up from the 141.9 registered in February 2021, reflecting a pickup in economic activities following the conclusion of elections.

CIEA represents the monthly dynamics of aggregated economic activity. It is calculated as weighted average of monthly indicators of sections of the national economy.

Sentiments about doing business IN Uganda remained positive during the month of April. The sectors where business executives expressed the highest level of optimism about business conditions in the next three months include: other services, agriculture and manufacturing. 

The Business Tendency Index (BTI) increased to 55.4 from 52.5 in March 2021, which reflects increasing positive sentiments about doing business.

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