A person rides a scooter with the skyline visible in the background, in Abu Dhabi, United Arab Emirates, September 27, 2023. REUTERS/Amr Alfiky/File Photo Acquire Licensing Rights
DUBAI, Dec 6 (Reuters) – Growth in non-oil business activity in the United Arab Emirates eased in November from multi-year highs seen the previous month as new order growth slowed and business confidence weakened, a survey showed on Wednesday.
The seasonally adjusted S&P Global UAE Purchasing Managers’ Index retreated to 57.0 in November from 57.7 in October but remained well above the 50.0 mark signalling growth in activity.
However, the sub-index for new orders fell to 60.5 in November, signalling a marked slowdown from October’s 65.2, with growth in export orders slowing to a reading of 52.4, the lowest since July and down from 59.3 in October.
“The strong run of demand growth in the UAE non-oil economy sparked a rapid increase in input buying during November, as firms looked to ensure they were in a good position to take advantage of growth opportunities,” David Owen, senior economist at S&P Global Market Intelligence, said.
“Indeed, the uplift in buying – the fastest since July 2019 – supported the most rapid build-up of stocks in close to six years, benefiting both local businesses and trade partners.”
However, increased competition, with new firms entering the market, was among reasons for more muted expectations towards future output, which slipped for a second consecutive month.
Reporting by Rachna Uppal; Editing by Susan Fenton
