High-frequency indicators continued to signal resilience and expansion in Uganda’s economic activity during May 2026, according to the Performance of the Economy Report.
The Purchasing Managers’ Index (PMI) remained above the 50.0 threshold at 54.1, indicating sustained improvement in business conditions.
Business sentiments also improved during the month, with the Business Tendency Index (BTI) rising to 56.7 in May 2026 from 55.2 in April 2026, reflecting continued optimism across most monitored sectors. The optimism was largely driven by robust consumer demand.
Annual headline inflation increased to 3.2 percent in May 2026 from 3.0 percent in April 2026, mainly driven by higher transport and energy-related costs following increases in domestic fuel prices.
However, inflation remained below the 5.0 percent target.
The Uganda Shilling depreciated by 1.3 percent against the US Dollar in May 2026, trading at an average midrate of Shs 3,764.11 per US Dollar compared to Shs 3,716.70 in April 2026.
The slight weakening of the Shilling was mainly attributed to increased demand for the dollar by traders to meet higher energy import and freight costs amid continued geopolitical tensions in the Middle East.
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