Accelerating production growth and new orders led to a sharp improvement in the performance of the non-oil private sector in the UAE in October, which pushed employment rates to the strongest growth since July 2016.
The UAE’s Non-Oil Private Sector Purchasing Managers Index, released Thursday by S&P Global, climbed to 56.6 points in October from 56.1 points last September.
The October reading was close to an August over three-year high of 56.7, according to the report.
According to David Owen, an economist in the report, the UAE’s non-oil private sector continued to grow at a brisk pace at the start of the fourth quarter, “and this recovery was driven by strong business expansions and new orders. “.
According to the report, the growth rate of business activity accelerated in October and recorded the second fastest reading since July 2019 after August 2022.
On the sales side, the report indicates that new customers, lower prices and better services contributed to the increase in sales, although exports have seen the slowest increase since the beginning of the year.
Companies benefited from cheaper items such as fuel, which kept inflation at a moderate level, while some companies cut producer prices again in October to improve competitiveness and sales.
In October, companies drastically increased their purchases in an effort to increase inventories, but their confidence in future production declined as the last quarter of the year began.
(Prepared by: Shaima Hefzy, contact [email protected])
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