UAE: PMI moderates in September
The S&P Purchasing Managers’ Index (PMI) fell to 56.1 in September from August’s 56.7. As such, the index remained entrenched above the 50.0 no-change threshold, signaling a softer, albeit still strong, improvement in non-oil private sector operating conditions from the previous month.
September’s moderation was chiefly due to new orders growth softening from August’s nine-month high. That said, the expansion was still robust thanks to improving market conditions. Additionally, output expanded at a softer rate in September, moderating from August’s 38-month high. Consequently, employment levels rose once again in September, with the job creation rate similar to that of August. With regard to costs, reductions in prices for energy and other commodities led to subdued cost inflation compared to the first six months of 2022. This, in turn, prompted output charges to fall for a fifth consecutive month in September. Lastly, firms’ expectations for the year ahead improved.