Stanbic Bank August PMI registers growth

By Ambrose Gahene

The Headline Stanbic Bank Uganda Purchase Manager’s index {PMI} for August signaled a further improvement in the health of the Ugandan private sector. At 54.1 in August up from 54.3 in July, the seasonally adjusted index was above the average recorded over 15 months of data collection so far. Commenting  on  Augusts’  survey  findings,  Jibran Qureishi,  Regional  Economist  East Africa,  at  Stanbic  Bank said: “The private sector continued to show encouraging signs  of  improvement  in  August  with  the  PMI average recorded over the past two months of 54.2 being much higher than the 51.6 average in the first two  quarters  of  2017.  Indeed,  even  though  export orders  were  down  in  August,  firms  are  likely  to begin  exporting  much  more  over  the  remainder  of the year and beyond as political risk in key trading partners  could  begin  to  subside.  Moreover, the current stable macroeconomic environment is likely to  bode  well  for  the  Ugandan  private  sector  in FY2017/18  and  continue  to  moderately  get  the economy back on firm growth trajectory path. ”

Analysing the performance of the various sectors Anne Juuko Stanbic Bank Uganda’s head of Global Markets revealed; “Following stability in the preceding month, the wholesale & retail sector returned to growth in August. In addition, further improvements in business conditions across the remaining sectors (agriculture, construction, industry and services) were maintained from the previous survey period.’’

She noted that the Uganda’s private sector registered increases in both output and new orders for the seventh consecutive month. In response to greater output requirements, private sector firms raised their payroll numbers accordingly with all five monitored subsectors increased their staffing levels during August.

In contrast to the trend seen for total new business, new export orders fell during August, with panellists mentioning political instability in key export markets namely; Southern Sudan and Kenya where fresh elections have just been announced.

The Stanbic PMI is a composite index, calculated as a weighted average of five individual sub-components: New Orders (30 per cent), Output (25 per cent), Employment (20 per cent), Suppliers’ Delivery Times (15 per cent) and Stocks of Purchases (10 per cent). Readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show deterioration.

About Stanbic Bank Uganda

Stanbic Bank Uganda is a member of the Standard Bank Group, Africa’s largest bank by assets. Standard Bank Group reported total assets of R1,98 trillion (about USD128 billion) at 31 December 2015, while its market capitalization was R184 billion (about USD11,8 billion). The group has direct, on-the-ground representation in 20 African countries. Standard Bank Group has 1 221 branches and 8 815 ATMs in Africa, making it one of the largest banking networks on the continent. It provides global connections backed by deep insights into the countries where it operates.

Stanbic Bank Uganda provides the full spectrum of financial services. Its Corporate & Investment Banking division serves a wide range of requirements for banking, finance, trading, investment, risk management and advisory services. Corporate & Investment Banking delivers this comprehensive range of products and services relating to: investment banking; global markets; and global transaction products and services. Stanbic Bank Uganda personal & business banking unit offers banking and other financial services to individuals and small-to-medium enterprises. This unit serves the increasing need among Africa’s small business and individual customers for banking products that can meet their shifting expectations and growing wealth.

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