UAE: PMI hits highest reading since June 2019 in November
The IHS Markit Purchasing Managers’ Index (PMI) rose to 55.9 in November from October’s 55.7. November’s result marked the best performance since June 2019. As such, the index moved further above the 50-threshold, signaling a faster improvement in business conditions compared to the previous month.
Output and new orders growth both reached over two-year highs, amid Expo 2020’s boost to spending and tourism. That said, employment levels remained flat, while inventories growth weakened to the lowest in a year and suppliers’ delivery times decreased, denting the overall figure somewhat. Input inflation slowed to a six-month low, which fed into a decrease in output prices. Amid the business brought by the Expo, firms’ optimism remained only slightly below the over one-year high recorded in October.
On the labor market, IHS Markit’s David Owen commented:
“The stagnation of hiring activity suggested that businesses are delaying staff decisions until they know the full extent of the economic recovery following the expo. That said, further rises in demand and backlogs could support an increase in employment sooner rather than later.”