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UAE’s PMI falls to 54.1 in January 2023

UAE’s PMI falls to 54.1 in January 2023
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UAE - Mubasher: The seasonally adjusted Purchasing Managers' Index (PMI) of the UAE hit 54.1 in January 2023, marking another powerful improvement in the sector's performance at the beginning of the year.

January’s PMI edged down from 54.2 in December 2022, recording the lowest level since January 2022, according to the latest S&P Global PMI data.

Although growth further retreated from its post-pandemic highs during the second half (H) of 2022, UAE non-oil businesses maintained their solid position and expansion at the start of this year.

Both output and new orders enlarged in January, as strong supply chains and firm energy prices kept input costs stable. In this regard, firms increased the employment numbers at a faster rate than last December.

Overall sales growth was partly blocked by a sustained reduction in export orders, which dropped at the quickest rate since June 2021 due to weakening global economic conditions.

David Owen, Economist at S&P Global Market Intelligence, noted: "Activity levels rose sharply in response to another marked boost in new order inflows, although the rate of activity growth was the joint-slowest for 16 months.”

"The results showed that the non-oil sector remains in good health and in particular, compares positively against a global economic slowdown towards the end of 2022,” Owen added.

He elaborated: “That said, weak global conditions weighed on export demand in January, as firms saw foreign sales decrease at the fastest rate since June 2021.”

the economist stated: “Firms were somewhat optimistic about future output prospects. Despite improving slightly from December's recent low, the level of confidence remained among the weakest seen in the series' history."