UAE: PMI picks up in May
The S&P Global Purchasing Managers’ Index (PMI) rose to 55.6 in May from April’s 54.6. May’s result marked the best reading since December 2021. As such, the index moved further above the 50.0 no-change threshold, signaling a stronger improvement in non-oil private business conditions compared to the previous month.
May’s improvement was largely due to output growth accelerating to a six-month high, bolstered by the strengthening of demand and an improving economic panorama. Higher workloads resulted in increased staff levels, with a seven-month high job creation rate in May. With regard to prices, increases in prices for fuel, metals, chemicals and energy led input price inflation to soar to a three-and-a-half-year high. However, average prices charged decreased as a consequence of ongoing discounts. Lastly, firms’ sentiment improved slightly from April, due to improved output and demand expectations for the coming 12-month period.