© Reuters. People walk on a pedestrian bridge on Bluewaters Island in Dubai – Photo from the Reuters Archive.
DUBAI (Reuters) – The UAE’s non-oil private sector grew in November at its slowest pace since January, according to a survey on Wednesday, with signs that fears about a global slowdown were weighing on 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 its 2009 average of 54.2.
“New business surged at a much weaker pace amid concerns about stiff market competition and a global economic slowdown,” wrote David Owen, an economist at S&P Global Market Intelligence, which conducted the survey. “Confidence about future production has fallen to its second lowest level in 15 months, prompting companies to cut the number of jobs from their recent high level.”
“However, the headline reading of 54.4 indicates that UAE companies are still enjoying strong growth, a feat that is becoming more difficult to achieve in the global economy. Furthermore, UAE companies they faced little pressure on input costs, which rose at the weakest pace for three months,” he added. Only marginally.”
The manufacturing sub-index that measures economic activity fell to 59.9 in November from 62.8 in October. The employment sub-index fell to 51.5 in November from 52.0 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.
“Positive expectations are often attributed to the current strength of the economy and upcoming work projects, although some companies are skeptical that growth will continue amid headwinds from the global economy,” the PMI report said.
(Cover by Youssef Saba – Prepared by Ali Khafaji for the Arab Bulletin)
