UAE non-oil private sector slows in November

A survey showed on Wednesday that the UAE’s non-oil private sector grew in November at its slowest pace since January, with signs emerging that concerns about a global slowdown impacted sales and confidence.

The S&P Global UAE Seasonally Adjusted Purchasing Managers’ Index fell to 54.4 in November from 56.6 in October, still slightly above the media since 2009 of 54.2.

“New business has surged at a much slower pace amid concerns about stiff market competition and a slowing global economy,” wrote David Owen, an economist at Standard & Poor’s Global Market Intelligence, which conducted the survey.

“Confidence about future production has fallen to the second lowest level in 15 months, prompting companies to cut jobs from their recent high,” he said.

Owen added, “However, a headline reading of 54.4 points indicates that UAE companies are still enjoying strong growth, a feat that is becoming increasingly difficult to achieve in the global economy. Furthermore, UAE companies faced little pressure on input costs, which increased from the weakest A quarterly pace and only marginally.”

The manufacturing sub-index that measures business activity fell to 59.9 in November from 62.8 in October.

The employment sub-index fell to 51.5 points in November from 52 points in October.

Output expectations over the next 12 months fell for the second consecutive month, to the sub-index’s second lowest level since August 2021.

“The positive outlook is often attributed to the current strength of the economy and upcoming project work, although some companies are skeptical that growth will continue amid headwinds from the global economy,” the PMI report said.

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