UAE: Non-oil private sector conditions improve at strongest pace in over three years in August

UAE PMI August 2022

UAE: Non-oil private sector conditions improve at strongest pace in over three years in August

The S&P Global Purchasing Managers’ Index (PMI) rose to 56.7 in August from July’s 55.4. August’s result marked the best performance since June 2019. Consequently, the index moved further above the 50.0 no-change threshold, signaling a faster improvement in business conditions in the non-oil private sector compared to the previous month.

August’s reading came on the back of stronger output and new orders expansions amid improved domestic client demand and more special offers. Moreover, the job creation rate accelerated to a one-year high in August. With regard to prices, output charges decreased at the quickest pace in nearly two years, as companies tried to attract new clients with discounts. Additionally, input costs decreased for the first time since January 2021 in August, largely due to lower prices for fuel. That said, new exports rose only minimally, likely due to weakening global demand. Lastly, firms’ sentiment for the coming year deteriorated to a near 18-month low in August against a backdrop of uncertainty surrounding the health of the global economy.

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