PARIS – The United Arab Emirates’ non-oil private sector expanded at its slowest pace in almost three years in July, a survey showed on Monday, with both output and new order growth easing.
The seasonally – adjusted S&P Global UAE Purchasing Managers’ Index fell to 53.7 in July from 54.6 in June, the lowest since September 2021, and below its long-run average, although still above the 50.0 breakeven mark, signalling expansion.
“The drop in the UAE PMI is a further signal that non-oil sector growth is on a downwards trend in 2024”, said David Owen, senior economist at S&P Global Market Intelligence, adding a key challenge was capacity constraints and growing backlogs.
New order growth eased a three-month low, with he sub index falling to 57.5 in July from 58.8 in June, but firmly in a expansion territory, as both domestic and international demand conditions remained favorable.
The pace of output growth weakened further, while price inflation accelerated, with the index for input prices hitting a two – year high.
“That said, overall the PMI suggests that the non-oil sector is expanding solidly and could be strengthened if companies start to get on top of their workloads”, Owen said.
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