IDEAS home Printed from https://ideas.repec.org/p/ags/eprcug/198743.html
   My bibliography  Save this paper

Low inflation, consumer confidence sustain favourable business conditions

Author

Listed:
  • Mawejje, Joseph
  • Lakuma, Corti Paul

Abstract

The Uganda business climate continued to improve. The index for the current quarter (July - September 2014) is 117.2 and has improved by 24.2 points on a year-on-year basis and by 13.5 points on a quarter-on-quarter basis. The rise in the index suggests continued favourable conditions for doing business in Uganda. The continued improvement in the business climate was driven largely by: low inflation which ensured favourable input and product prices and stronger consumer confidence, which in turn drove business expectations of improved profitability. Despite these positive sentiments, production capacity remained well below potential thus constraining labour demand to a significant degree. Indeed, both indices for capacity utilization and employment improved only modestly indicating underlying risks to business expansion and employment creation. Business perceptions and expectations for the next quarter (October – December 2014) remain favourable on account of expected continuity in price stability. However, persistent challenges due to electricity outages, access to finance and the proliferation of substandard and counterfeit products pose serious risks for doing business.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Mawejje, Joseph & Lakuma, Corti Paul, 2014. "Low inflation, consumer confidence sustain favourable business conditions," Uganda Business Climate Index 198743, Economic Policy Research Centre (EPRC).
    • Handle: RePEc:ags:eprcug:198743
    DOI: 10.22004/ag.econ.198743
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/198743/files/Low%20inflation_consumer%20confidence%20sustain%20favourable.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.198743?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:eprcug:198743. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/eprccug.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.