UAE: Conditions improve at marginally slower pace in April
The S&P Global Purchasing Managers’ Index (PMI) fell to 54.6 in April from March’s 54.8. As such, the index remained above the 50.0 no-change threshold, pointing to a continued, albeit moderating, improvement in business conditions from the previous month.
April’s marginal moderation came amid a softer expansion in new orders and a slight decline in employment levels. Nevertheless, non-oil output expanded at the quickest pace since December 2021. On the price front, higher energy and raw material prices stemming from the war in Ukraine continued to push input costs up. This prompted businesses to pass on part of the extra burden to customers, leading to the first increase in average output costs in nine months. Lastly, firms remained optimistic with regard to the outlook for the coming year, although confidence dropped to a four-month low due to concerns over inflation and supply disruptions.