Prospects brighter for Uganda’s economy—report
This is according to the performance of the economy report for April that was released by the finance ministry.
Permanent Secretary of the Ministry of Finance and also the secretary to the Treasury (PSST), Ramathan Ggoobi. (File photo)
Umaru Kashaka
Journalist @New Vision
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Uganda’s overall economic activity and business outlook continued to improve in April 2025, as reflected by the upward trends in high-frequency indicators such as the Composite Index of Economic Activity (CIEA) and Purchasing Managers' Index (PMI).
This is according to the performance of the economy report for April that was released by the finance ministry.
CIEA is a statistical measure that combines multiple individual indicators to give an overall summary of a market or economic sector's performance. Composite indexes are created to conduct investment analysis, measure economic trends, and forecast market activity.
Similarly, the report says perceptions about doing business as reflected by the Business Tendency Index (BTI) remained positive and optimistic.
The CIEA had an upward trend, increasing to 170.6 in March 2025 from 169.7 the previous month, signalling an improvement in economic activity.
Growth in the CIEA was majorly attributed to increased activity in the agriculture, services and industry sectors.
The PMI increased to 55.3 in April 2025 from 52.9 in March 2025, signalling an improvement in business conditions during the month.
“This increase was supported by strengthened consumer demand and a resultant expansion in new orders and output. Additionally, firm employment increased in line with higher output expectations for the year ahead,” the report said.
PMI, according to Investopedia, is based on a monthly survey of supply chain managers across multiple industries, covering upstream and downstream activity. PMI can range between 0 and 100, with a number over 50 citing expansion and under 50 noting contraction.
The BTI indicated increased investor optimism in April 2025, increasing to 59.32 in from 58.32 the previous month.
Investors were more optimistic about the business environment, especially in the construction, manufacturing and wholesale trade sectors, the report said.
This is shown by the BTI, which remained above the 50-mark threshold. Key indicators measured by the index show that the business community was more optimistic about the current business and financial situation.