Kampala, July 8 (Xinhua)-Uganda’s Purchasing Managers Index (PMI) fell from 56.5 in May to 34.9 in June due to blockade measures aimed at delaying the proliferation of COVID-19 cases. The bank reported on Wednesday.
A new reading of the monthly report issued by Stanbic Bank Uganda shows that Uganda’s business conditions have deteriorated for the first time in five months, below the series average of 52.8.
A threshold of 50 is a baseline that indicates an increase or decrease in business conditions.
The report showed that the blockade affected various indicators across the private sector as the decline in customer numbers meant a lack of new orders and business activity also declined.
Business activity is expected to recover once the blockade is lifted, supporting the optimistic view of the 12-month outlook.
However, the investigation also warned that if the blockade measures were strengthened, it could delay the recovery of economic activity.
On June 18, Uganda imposed a 42-day blockade to reduce the rate of COVID-19 infection. According to the Ministry of Health, the country enrolled an average of over 1,000 COVID-19 cases per day.
Uganda’s PMI drops to 34.9 in June during the blockade of COVID-19
Source link Uganda’s PMI drops to 34.9 in June during the blockade of COVID-19