He pointed out UAE Purchasing Managers Index To the weakest expansion in non-oil business activity in three years at the end of the third quarter of 2024.
The slowdown in growth was accompanied by a slowdown in the growth of new orders and a slowdown in job creation. September data also showed continued operational constraints, with companies often unable to sufficiently enhance their capabilities in order to make progress in business lines.
Although the index was much higher than the 50.0 level that separates growth from… deflationIt recorded its second lowest level in three years, exceeding only July’s reading of 53.7 points.
Likewise, the levels of new business it received increased Non-oil producing companies rose at a sharp pace during the latest survey period, supported by a strong increase in export sales and reports of strong domestic market conditions. However, the expansion rate slowed and was the second weakest in a year and a half.
Some pointed out Companies Once again intense competition has hampered sales, as well as caution about the future of the business, as production expectations for next year fell to their lowest levels in 18 months.
Dubai is witnessing a strong expansion in the private sector
The Purchasing Managers’ Index indicated… Dubai A strong expansion in business conditions in the non-oil private sector in September. Overall activity levels rose at the fastest pace in four months, although new business growth slowed.
The expansion led non-oil companies to increase employee numbers and inventory to greater degrees than in August. Supplier performance also improved, albeit to a lesser extent, amid reports of customs delays.
Regarding prices, the study data indicated a sharp rise in the total costs of production inputs during the month of September, albeit a moderate one Inflation It fell to its lowest level in five months.
Production prices also rose, as companies tried to pass on costs to customers.
It is worth noting that the recent rise in prices was the fastest since the beginning of 2018.
For his part, David Owen, Senior Economist at S&P Global Market Intelligence, said: “The UAE PMI continues to indicate a loss of momentum in the non-oil private sector, with growth slowing significantly since the beginning of the year. Companies faced further challenges in completing new business, despite slower sales growth and a strong rise in purchases and competition remained another area of difficulty, with panellists reporting that tougher market conditions led to a more cautious outlook for next year – as forecasts reached. Production is now at its lowest levels since early 2023.
He added: “The study data also indicated that companies chose to maximize revenues while sales were still strong, as production costs rose at the fastest rate in more than six and a half years. This is partly due to cost pressures that remained strong in September, despite “There is some decline in this aspect compared to the past few months, which may be a sign that the inflationary trend will diminish.”
