June 26, 2022

Dubai Week

Complete Dubai News World

Private sector performance in the United Arab Emirates continues to recover strongly

Private sector performance in the United Arab Emirates continues to recover strongly

According to the IHS Markit Purchasing Managers’ Index, although growth was slower than in the fourth quarter of 2021, growth in the non-oil sector in the UAE accelerated in February as demand increased and production increased significantly.
The seasonally adjusted UAE PMI rose to 54.8 in February from 54.1 in January.
This code was supported by the holding of the World Exhibition in Dubai, which began in October.
“As Expo 2020 continues and countries ease their travel restrictions and companies point to the growth of the tourism sector, this increase is related to increased customer demand,” said David Owen, an economist at IHS, which prepared the survey.
He added, “Although production grew sharply in February, companies have not yet reported enough production capacity to cope with new orders, coupled with a decline in employment speeds and difficulties affecting global distribution.”
The manufacturing sub-index rose to 60.6 in February from 59.6 in January. Employment activity has declined slightly above the 50 level separating growth from contraction.
Although inflation has been at an all-time low since November, rising input costs for companies have risen as raw material and transportation prices have risen.
“Companies point out that despite the global supply chain turmoil, local suppliers are increasing their capacity to deal with these problems,” the report said.
The business sentiment for the coming year, which is included in the futures production sub-index, has improved the most since October and is the second strongest since mid-2020.