Uganda's PMI rises to 50.5 in August: report

KAMPALA, Sept. 6 (Xinhua) -- Uganda's Purchasing Managers' Index (PMI) rose to 50.5 in August, up from 48.2 in July, according to a new report issued on Tuesday.

The threshold of 50 is a baseline to indicate an increase or a decline in business conditions.

The monthly report issued by Stanbic Bank Uganda attributed the increase to renewed improvement in business conditions for the private sector as both output and new orders returned to growth.

The report showed that during the month, companies increased their purchasing activity following a fall in the previous month.

Apart from the service sector, output growth was also seen in the agriculture, industry, construction, wholesale and retail sectors.

The report indicated that companies remain optimistic regarding the outlook for the next 12 months with hopes that prices will stabilize and new orders expand.