KAMPALA, (The Southern African Times) – Uganda’s Purchasing Managers’ Index (PMI) fell for the third consecutive month in January, a new report issued here said Tuesday.
The monthly report for January issued by Stanbic Bank Uganda showed the PMI in January dipped to 49.8 from 51.2 in December and 53.9 in November last year.
The report also showed that for the first time in seven months the PMI fell below the threshold of 50, which is a baseline to indicate an increase or decline in business conditions.
The decline is attributed to uncertainties about the recently concluded general elections which caused a slowdown in company orders for new items and forced them to scale back their purchasing activities.
The election fear, which built on the already negative impact of COVID-19, saw companies scaling down their staffing levels in January, according to the report.
The report showed that in spite of signs of weakness at the start of the year, firms remained confident that output will rise during the year.