Private Sector Sentiment remained optimistic in Q2 FY2024/25, as reflected in the Business Tendency Index (BTI), which stayed above the 50-mark threshold. The BTI increased from 58.4 in Q1 FY2024/25 to 59.0 in Q2 FY2024/25, signaling growing confidence in business conditions. Similarly, the Composite Index of Economic Activity (CIEA) rose by 1.3%, from 165.4 in Q1 to 167.5 in Q2 FY2024/25, driven by growth in coffee exports and higher private sector credit, which supported economic activities during the quarter.

The Business Climate Index (BCI) improved by six points, from 81 in Q4 FY2023/24 to 87 in Q1 FY2024/25. This improvement was driven by a favorable business environment, lower input costs, and salary increases, supported by macroeconomic stability, particularly a slowdown in inflation and favorable exchange rate movements.

https://eprcug.org/publications/uganda-business-climate-index/