Abu Dhabi – Mubasher: The main purchasing managers index of S&P Global in the UAE rose from 55.0 points in August to 56.7 points in September.
According to index data, the 1.7-point increase in the main index was largely driven by the new orders sub-index, which rose by more than seven points, recording its highest level since June 2019.
The index indicated a significant improvement in new order flows during the month of September, as approximately 38 percent of the companies participating in the study indicated a monthly increase compared to 8 percent that witnessed a decrease.
The positive impact on production expectations was more pronounced, as confidence improved again and reached its strongest levels since March 2020.
Non-oil producing companies saw further improvement in their supply chains, with delivery times shrinking at the largest rate since July 2019, while the rate of job creation slowed and was slight during September.
The data indicated that the widening scope of inflationary pressures and strong demand for production inputs led to increases in raw material prices, and as a result, procurement costs and total costs rose strongly and at the fastest pace in more than a year.
“The UAE PMI recorded its first rise in three months in September, driven by a much larger rise in the number of new jobs than it actually was one month ago,” said David Owen, senior economist at S&P Global.
He added: The increase in the volume of new business was the fastest since June 2019, thanks to attracting new customers at the local level and in export markets.
Backlogs rose at the weakest rate in more than two years, while growth in inventory and employee numbers slowed, indicating that companies have sufficient production capacity to handle the influx of new orders.
Growth in demand led to increased purchases by non-oil producing companies in September, leading to an acceleration in the pace of purchasing price inflation.
Companies continued to reduce prices, albeit to a modest degree, suggesting that competition constrained pricing strategies.
The country’s economy grew by nearly 8 percent in 2022, partly due to higher crude oil prices and increased production, but for the current year, the International Monetary Fund expects GDP growth to slow by approximately 3.5 percent.
To trade and invest in Gulf stock exchanges, click here
Follow the latest stock and economic news via our Telegram channel
Nominations:
Infographic: The 15 largest Gulf banks in terms of profits in the second quarter of 2023
Learn about the 10 largest oil refineries in the world by the end of 2022 (infographic)
Infographic.. Learn about the market value of Arab stock exchanges within a week
Why do international companies choose the UAE as a center to launch their business in the Middle East?
2023-10-04 07:03:16
#UAE #Purchasing #Managers #Index #recorded #increase #months #September
