UAE - Mubasher: The UAE’s seasonally adjusted Purchasing Managers' Index (PMI) retreated to 54.4 in November 2022 from 56.6 last October, marking the slowest reading since the beginning of the year.
The PMI, which was still above the 50 mark, dropped mainly due to a softer rate of new business growth in November, according to the S&P Global PMI’s latest data.
Firms in the UAE witnessed the slowest growth in sales since September 2021, which is reportedly attributed to the weaker global economic conditions that limited spending.
Meanwhile, the overall hike in new business was still powerful amid new projects, enlarged tourism, and advance orders.
Non-oil activity surged during November, yet the growth was slower than the latest registered period.
Output widened mainly due to increasing demand, as some firms highlighted that ongoing projects had also sustained growth. However, the pace of expansion eased, when compared to January 2022.
The lower growth in the non-oil economy during November affected purchasing and employment. Input buying increased at the slowest pace since August, down from October's over three-year high.
Nonetheless, the upturn was still sharp and contributed to a further boost in inventories.
Regarding employment, the companies in the UAE reported a slight rise in staff numbers during November, which was lower than October's high.
David Owen, Economist at S&P Global Market Intelligence, said: "The UAE’s PMI fell back from its post-pandemic highs to a ten-month low in November, pointing to a slowdown in growth across the non-oil economy.”
Owen added: “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.”
The economist noted: "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."
