UAE - Mubasher: The UAE’s seasonally adjusted Purchasing Managers' Index (PMI) went up to 56.7 in August 2022 from 55.4 last July, marking the highest record since June 2019.

The reading reflected growth in the UAE’s non-oil economy last August, endorsed by increasing business activity, strong demand conditions, and a hike in new orders volume amid lower selling charges.

The growth rate signalled in sales during August was the second-fastest in more than three years, the latest S&P Global PMI data showed. 

Output charges set by non-oil companies in the UAE dropped for the fourth successive month last August, while firms continued to look for discount opportunities to attract new clients.

Accordingly, lower fuel prices triggered a decline in input costs during August 2022, which signalled the first decrease since January 2021.

David Owen, Economist at S&P Global Market Intelligence, commented: "The UAE PMI continued to trend higher in August, reaching a 38-month high of 56.7 to signal a robust improvement in business conditions in the non-oil economy. Sales growth picked up even further, supported by additional efforts to provide discounts to clients.”

Owen noted: "Input costs notably fell for the first time since January 2021, as lower fuel prices helped to ease the burden on companies' expenses and encouraged price drops for other items. The renewed decrease marked a considerable turnaround in inflationary pressures, which had reached an 11-year high in June.”