Business conditions in the United Arab Emirates ended last year with the weakest improvement in 11 months as waning demand prompted slower increases in output, new orders and employment.
(Bloomberg) — Business conditions in the United Arab Emirates ended last year with the weakest improvement in 11 months as waning demand prompted slower increases in output, new orders and employment.
The deceleration in activity brought S&P Global’s UAE Purchasing Managers’ Index to 54.2 in December, a slight decrease from November and down from last year’s peak of 56.7 in August. It’s been above the 50-mark separating growth from contraction for over two years.
The lowest reading since January provided “further signs that growth momentum has moderated from its post-pandemic peak in the third quarter,” said David Owen, economist at S&P Global Market Intelligence. “The slowdown reflected downward movements in three of the PMI’s largest components.”
More from the UAE’s PMI survey:
- Output and new businesses both rose at the slowest pace since September 2021
- Expectations about future output levels fell to the lowest since February 2021 and firms were less optimistic about future activity
- Companies reduced their hiring efforts as job figures rose at the softest rate in eight months
- Average output charges fell for the eighth straight month running as companies sought further sales through price promotions
“While domestic demand conditions are holding up relatively strong, weakness in the global economy led to a first decrease in new export business since August 2021,” said Owen.
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