Growth in the UAE’s non-oil private sector fell to a 12-month low in January as worsening global economic conditions weighed on sentiment about future activity, a survey showed on Friday.
Standard & Poor’s Global Purchasing Managers’ Index for the UAE fell to a seasonally adjusted 54.1 in January, down slightly from 54.2 in December and the lowest level since January 2022.
The manufacturing sub-index was unchanged from December at 58.8, but pointed to a strong expansion in non-oil private sector activity.
“The results show that the non-oil sector remains in good shape and is positioned positively for a global economic slowdown in late 2022,” said David Owen, chief economist for Global Market Intelligence at Standard & Poor’s.
“However, weak global conditions affected the pace of export demand in January, as companies reported the fastest drop in overseas sales since June-June 2021,” he added.
New orders rose last month to a three-month high and the sub-index rose to 56.0 from 55.5 in December.
However, the growth of new export orders continued to slow. The index fell below the neutral level of 50.0 for the second straight month to 47.5, the lowest level since June 2021, from 49.0 in December.
Job creation accelerated from the previous month, with the employment index reaching 51.3 in January, up from 50.6 at the end of 2022.
Strong supply chains and a partial easing of pressures on energy and transport prices helped stabilize input prices in January, while spending on jobs held steady, according to the survey.
However, just nine percent of respondents expected growth in the coming year as optimism about future manufacturing prospects remained subdued.
Source: EuroNews
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