UAE - Mubasher: The seasonally adjusted Purchasing Managers' Index (PMI) of the UAE plummeted to 55 in August 2023 from 56 last July, marking its lowest level since February.
However, the headline index remained higher than the 50 neutral mark and reflected a sharp improvement in operating conditions, according to the latest S&P Global PMI data.
Non-oil economy growth maintained its solid position midway through the third quarter (Q3) although it softened to the least marked since January.
Firms grew confident that activity levels will continue on an upward path, with optimism improving to its best in August 2023 since the COVID-19 pandemic in March 2020.
During last month, discounts on selling prices continued at a slower pace due to increased purchase prices and higher customer demand.
Nonetheless, businesses maintained their confidence that activity growth will be sustained over the next 12 months.
Rising new order inflows and higher business confidence resulted in a sharp surge in purchasing activity during August, with the expansion picking up to a four-month high.
David Owen, Senior Economist at S&P Global Market Intelligence, commented: "The findings suggest that the outlook for the non-oil sector is highly positive, with surveyed firms signalling that this was supported by rising new order inflows, greater tourism, and increased investment.”
"The headline PMI reading of 55.0 showed that growth of operating conditions was sustained in August, although momentum has waned since the four-year peak in June," Ownen added.
The Economist: “Output growth remained sharp, but slowed to the weakest since January, while the expansion in new orders has likewise lost speed since the second quarter of the year."
“That said, most PMI indicators continued to give positive signals, including uplifts in input purchases, inventory building, job creation, and improving supply chain conditions," he concluded.
