UAE - Mubasher: The IHS Markit UAE Purchasing Managers' Index (PMI) retreated to 54.1 points in January from 55.6 in December, reflecting the slowdown in the growth of the non-oil private sector economy.
The UAE witnessed a strong improvement in the non-oil sector's operating conditions in January, attributed to a recovery in economic conditions and increased demand from the Expo 2020, according to a press release on Thursday.
However, the expansion in activities and sales has fallen to a four-month low amid higher coronavirus (COVID-19) cases linked to the Omicron variant, which limited demand growth, customer spending, and foreign sales.
Meanwhile, companies saw the fastest rise in cost pressures for ten months, which have negatively affected purchasing activity and job creation.
The Economist at IHS Markit, David Owen, said: "The sector could quickly recoup this momentum in the coming months as the Omicron wave appears shorter than previous ones, although firms face additional challenges from stronger inflationary pressures, global supply chain problems and a possible dip in activity once the Expo ends."
