Stanbic PMI Records Improvement In Business Conditions As Year Closes.
The Stanbic Bank Headline Purchase Manager’s Index (PMI) posted a 56.6 performance in December which signified an improvement in business conditions at the end of 2018.
The latest reading which went up by 0.9 from 55.7 registered in November is higher than the series average of 53.2.
Commenting on December’s survey findings, Jibran Qureishi, Regional Economist E.A at Stanbic Bank said: “It is indeed a strong finish to 2018 for the private sector. Despite rising costs, firms have easily been able to pass this on to consumers.”
Jibran explains that this suggests that underlying demand has significantly improved and perhaps also justifies the MPC maintaining a hawkish bias in light of these risks that could feed through into core inflation.
According to the survey findings, crucial to the latest improvement in the health of the private sector was a rise in new business, which companies linked in turn to stronger client demand and higher customer numbers. This, in turn, led firms in Uganda to raise their business activity accordingly.