UAE non-oil private sector growth slows amid global headwinds - PMI
Reuters
Published Dec 06, 2022 11:27PM ET
DUBAI (Reuters) - The United Arab Emirates' non-oil private sector grew in November at its slowest pace since January, as signs emerged that concern over a global slowdown weighed on sales and confidence, a survey showed on Wednesday.
The seasonally adjusted S&P Global (NYSE:SPGI) UAE Purchasing Managers' Index (PMI) fell to 54.4 from 56.6 in October, remaining slightly above the series average since 2009 of 54.2.
"New business rose at a particularly weaker pace, amid concerns of strong market competition and a global economic slowdown. Confidence about future output fell to its second-lowest for 15 months, leading firms to pull-back hiring growth from its recent high," wrote David Owen, economist at survey compiler S&P Global Market Intelligence.
"That said, the headline reading of 54.4 suggests that UAE businesses are still enjoying robust growth, a feat that is becoming more difficult to achieve in the global economy. Adding to this, UAE firms are seeing little pressure on input costs, which rose at the softest pace for three months and only marginally."
The output 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 from 52.0.
Expectations for output over the next 12 months fell for a second consecutive month to the sub-index's second-lowest since August 2021.
"Positive expectations were often attributed to the current strength of the economy and upcoming project work, although some firms were doubtful that growth will continue amid global economic headwinds," the PMI report said.
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