UAE: PMI falls in September but remains in expansionary territory
The IHS Markit Purchasing Managers’ Index (PMI) came in at 53.3 in September, down from August’s 53.8. As such, the index remained above the 50-threshold, but pointed to a moderating improvement in business conditions from the previous month.
Business activity remained red-hot, with output rising at an only slightly weaker rate than August’s 25-month high, amid a continued improvement in demand as Covid-19 restrictions were lifted. New orders also registered a sharp increase at a rate largely unchanged from August’s. Meanwhile, backlog levels rose at the highest rate seen since March 2020. Staffing levels, however, only showed tepid growth, following August’s 43-month high. Firms’ confidence about the future economic outlook improved, with the Expo 2020 expected to boost activity, while input inflation slowed somewhat to a four-month low.