The month ending May 2017 registered slow expansion of private sector activity in Uganda due to weak exports to the regional markets as well as European Union.
According to Stanbic Bank Uganda Purchasing Managers’ Index (PMI) survey results released on Monday, May had a slip in activity from 53.5 in April to 50.0.
The drop in May was attributed to reduced demand from key markets like the neighboring DRC who trade with Uganda.
The PMI is based on five major indicators: new orders, inventory levels, production, supplier deliveries and the employment environment.
Jibran Qureishi, Regional Economist East Africa at Stanbic Bank said, the Purchasing Managers’ Index still showed some growth in May, though at a slower pace than the previous April.
Stanbic Banks Head of Global Markets Anne Juuko said despite the challenging market environment steady gains are being registered in key sectors of the economy.
She explained that the upward trend in agriculture and construction slightly outweighed the deterioration of business conditions in the remaining sectors like Industry, Services, Wholesale and Retail.
