Abu Dhabi – Mubasher: Purchasing Managers’ Index data issued by S&P Global indicated the growth of the non-oil producing sector in the UAE for the month of September.
According to the index, strong new business growth continued to drive production and employment increases, and companies also faced relatively moderate price pressures, as input costs rose slightly, according to a press release.
The UAE PMI fell for the first time in three months, recording 56.1 points in September, after hitting a three-year high of 56.7 points in August..
Although the growth rate of new orders was slightly below the nine-month high in August, it was sharper and faster than the trend since the survey began in August 2009..
The majority of companies surveyed indicated improved market conditions in addition to an increase in sales through efforts to keep prices affordable for customers. Sales from abroad also increased in September, although it was modest.
And non-oil producing companies posted another increase in hiring, which was broadly similar to that recorded in August.
Input purchases rose to the most in just over three years, as companies sought to build up raw material stocks in anticipation of continued strength in new orders..
“These findings suggest that local businesses are far from the economic storms in other regions, thanks to high growth rates in production and new business as the country continues to recover from the pandemic,” said David Owen, an economic researcher..
He continued, “The data for the month of September indicates another round of rapid decline in inflation after what it witnessed in the first half of the year.”
In spite of the rise in the costs of production inputs, they did not rise only slightly, as the decline in a large number of commodity prices helped reduce the burden on companies’ procurement budgets.
The latest S&P Global Purchasing Managers’ Index (PMI) data showed that non-oil private sector businesses across Dubai recorded a decline in total input costs for the first time in 19 months in August, driven by moderating fuel prices following trends. Recent inflationary.
Lower expenditures encouraged companies to cut their production prices during the last month, boosting sales growth to a 38-month high.
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