Manufacturing leads other sectors in job creation

Stanbic Bank’s Purchasing Managers’ Index showed manufacturing created more permanent and temporary jobs in October as the private sector continued to strengthen.

Overall, Stanbic noted that businesses recorded an increase in employment at the beginning of the fourth quarter, and company executives surveyed attributed the increase in headcount to increased business activity and demand.

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

However, she noted that the Purchasing Managers’ Index fell to 52.9 from September’s 54.2 but was still above 50, indicating a sustained improvement in business conditions, supported by higher production volumes and new orders.”

Ms Madula said the robust output growth reflected favorable demand, prompting companies, especially in the manufacturing sector, to hire more staff even as the backlog of work fell.

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

The survey also noted that new business expansion continued for the seventh month since April, fueled by an increase in new orders that has consequently spurred further growth in input purchases, a trend that has now spanned approximately two years. .

Stanbic also noted 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 monitored sectors recorded an increase in business activity.

However, personnel costs rose in October due to an increase in the number of jobs, as well as overtime pay and bonuses, especially in the manufacturing and wholesale and retail sectors.

However, a reduction in the number of personnel has been recorded in construction and agriculture.

The study also noted an increase in advertising spending and product quality, which in turn contributed to new sales growth and therefore new orders.

Supplier performance also improved, continuing for a year, and business leaders expressed confidence in the year ahead.

All five sectors monitored showed optimism about plans to increase advertising spending, which is expected to lead to new business.

There has been a decline in prices for building materials

Meanwhile, according to the Uganda Bureau of Statistics (Ubos), some construction materials have recorded price declines due to the slowdown in the construction and real estate sector as well as improving macroeconomic factors.

Details from Ubos show that since September there has been a decline in the prices of some building materials such as softwood lumber, steel-aluminium, and imported materials and equipment, leading to lower construction costs across the country.

Ms Irene N Musitwa, a statistician at Ubos, said the construction materials price indices and construction sector inflation for September recorded a fall in cement prices, which fell 1.7 percent from 0.9 percent in August.

Other items that fell in price included nails, down 1.2 percent from 0.7 percent, and sand, down 0.1 percent from a 0.6 percent rise.

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

Prices for construction materials, especially cement, have remained volatile over the past five years due to production shortfalls resulting from plant breakdowns and rising demand due to increased real estate and construction activity.

But prices are falling due to the stability of the economy, which has recently seen falling fuel costs, one of the biggest drivers of price changes.

Ms Musitwa also noted that prices of concrete bricks, blocks and slabs also increased by 0.3 percent during the period.