Uganda’s private sector posted its fourth month of consecutive growth as strong orders incentivised companies to increase staffing levels for the first time in six months, a survey showed on Friday.
The Stanbic Bank Uganda purchasing managers’ index rose to 54.1 in November, down from 54.6 the previous month, according to the survey conducted by IHS Markit, the international research firm. The reading marked the fourth straight month the gauge is above the 50 mark that separates an expansion of activity from contraction.
“Job creation was signalled in Uganda’s private sector for the first time in six months during November as companies responded to sustained increases in output and new orders,” the survey said. Output and new orders rose for the fourth straight month, spurred by stronger demand and an increase in customers.
Hiring strengthened across four of the monitored sectors, with only agriculture posting a decline. The private sector also reported a rise in wages for the first time in six months. In addition, purchasing activity by firms and inventories increased.
Production costs rose further, largely due to higher fuel costs, purchases, and an increase in wages. In response, companies raised their selling prices for the third straight month.