UAE: PMI eases in June
The S&P Global Purchasing Managers’ Index (PMI) came in at 54.8 in June, down from May’s 55.6. As the index remained above the 50.0 no-change threshold, this pointed to a continued, albeit moderating, improvement in non-oil business conditions from the previous month. June’s moderation was primarily driven by rising fuel prices, which put strong upward pressure on input costs, with the latter increasing at the strongest pace in 11 years. This prompted firms to moderate their purchasing activity. However, output prices decreased, as tough competition prevented firms from passing on higher costs to customers. Against this backdrop, price promotions continued to drive growth in new orders, albeit at a more modest pace than in April or May. Strong demand led to a rise in both activity and employment, with companies forced to offer higher salaries. In spite of fears of further inflationary pressures, firms’ expectations for future activity improved to an eight-month high.