The non-oil private sector activity in the UAE slowed for the second straight month in December 2022 while output growth dropped to a 15-month low, a survey showed Wednesday.
The seasonally adjusted S&P Global UAE Purchasing Managers’ Index (PMI) dipped fractionally to 54.2 in December last year from 54.4 in the previous month, in line with its long-run series average, the recent reading showed.
Output growth last month continued to run at a sharp pace but showed further signs of softening from its over three-year high in August 2022. S&P Global said panelists often linked the increased output to expansion in sales and customer numbers. Some firms, however, struggled to acquire new orders.
Improving supplier availability underpinned lower material prices as firms recorded a fractional fall in input costs. Firms were encouraged to cut output charges at the quickest pace for three months due to the reduction.
An improvement was seen in demand from domestic clients, but weakening global economic conditions weighed by the expansion as new export business fell for the first time since August 2021. According to the survey, with the softer demand outlook, firms were less optimistic last month about future activity, and expectations fell to their lowest level since early 2021.
The slowdown reflected downward movements in three of the PMI's largest components, with output and new business growth both easing to 15-month lows, while employment rose at the softest rate in eight months,” David Owen, an economist at S&P Global Market Intelligence, said in a statement.
