The Stanbic Bank Purchasing Managers’ Index indicated that the manufacturing sector created more permanent and temporary jobs in October, benefiting from the continued strengthening of the private sector.

Overall, Stanbic noted that companies saw an increase in employment at the start of the fourth quarter, with surveyed business executives attributing the increase in headcount to an increase in business activity and demand.

Ms Mulalo Madula, a senior analyst at Bank Stanbic, said the survey indicated a sustained expansion of the private sector, which has now lasted for seven months.

However, she noted that the Purchasing Managers’ Index score had fallen to 52.9 from September’s 54.2, but was still above 50, indicating sustained improvement trading conditions, supported by an increase in production and new orders.

The persistent increase in output, Madula said, reflects favorable demand, prompting businesses, particularly in the manufacturing sector, to hire more staff, even as work backlogs have declined.

However, the survey, which interviews purchasing managers or business executives, found rising input prices for both purchasing and staff costs, but noted that “general business sentiment remained positive, indicating that the private sector is likely to maintain its growth trajectory.”

The survey further noted a continued expansion in new business for the seventh month since April, supported by an increase in new orders, which led to a further increase in input purchases, a trend which now extends for around two years. .

Stanbic also indicated that there was an increase in purchasing activity amid expectations of stronger demand in the coming months, noting that with the exception of agriculture, each of the sectors monitored recorded a slight increase in commercial activity.

However, personnel costs increased in October due to an increase in the number of jobs, as well as overtime and bonus payments, particularly in the manufacturing and wholesale and retail trade sectors. .

On the other hand, construction and agriculture recorded a drop in numbers.

The survey also noted an increase in spending on advertising and product quality, which supported a recovery in new sales, and therefore an increase in new orders.

Supplier performance has also improved for a year now, with business leaders expressing confidence in the year ahead.

All five sectors tracked showed optimism about plans to increase advertising spending, which should translate into new orders.

Construction materials record price decline

Meanwhile, several construction materials have recorded a decline in prices due to a slowdown in the construction and real estate sector, in addition to an improvement in macroeconomic factors, according to the Uganda Bureau of Statistics (Ubos).

Details from Ubos indicate that since September there has been a reduction in the prices of certain construction materials such as softwood lumber, steel, aluminum and imported materials and equipment, thereby reducing the cost construction throughout the country.

Ms Irene N Musiitwa, Ubos Statistician, said the construction input price indices and construction sector inflation for September recorded a decline in cement prices, which fell by 1.7 percent compared to 0.9 percent in August.

Other products that saw a drop in price included nails, whose cost fell 1.2 percent from 0.7 percent, and sand, which fell 0.1 percent from an increase of 0.6 percent.

However, clay bricks and tiles saw prices rise by 0.1 percent, while steel sheets and roofing sheets rose by 4.1 percent, up from 0.6 percent in August. .

The price of construction inputs, particularly cement, has remained volatile over the past five years due to production shortages resulting from factory breakdowns and a rise in demand due to increased real estate activities and of construction.

But prices have fallen due to the stable economy, which has recently seen a reduction in the cost of fuel, one of the main drivers of price changes.

Ms Musiitwa also said prices of concrete bricks, blocks and slabs also saw an increase of 0.3 per cent during the period.