©Health & Fitness Journal. FILE PHOTO: A general view of the Burj Khalifa and downtown skyline in Dubai, United Arab Emirates, June 12, 2021. Picture taken June 12, 2021. REUTERS/Christopher Pike/File Photo
DUBAI (Health & Fitness Journal) – Non-oil private sector growth in the United Arab Emirates slowed for a second straight month in December, while output growth slipped to a 15-month low, a survey showed on Wednesday.
The seasonally adjusted S&P Global (NYSE:) UAE Purchasing Managers’ Index (PMI) fell to 54.2 in December from 54.4 in November, in line with the series average.
“The slowdown reflected downward moves in three of the largest components of the PMI, with growth in both manufacturing and new business falling to 15-month lows, while employment rose at the slowest rate in eight months,” said David Owen, Economist at S&P Global Market Intelligence.
“While domestic demand remains relatively strong, weakness in the global economy led to a first decline in new export business since August 2021.”
Although the output sub-index continued to show a sharp rise in non-oil private sector activity, it slipped to 58.8 in December from 59.9 in the previous month.
The new orders sub-index fell to 55.5 from 55.7 in November and the employment index also eased, falling to 50.6 last month from 51.5 in November.
“Jobs at non-oil firms in the United Arab Emirates continued to rise in the last month of the year, extending the current growth spurt that started in May. However, recent staff increases have been the weakest over the period and only marginal, with the vast majority of respondents keeping employment stable,” the survey reads.
Looking ahead, a slowdown in the domestic economy and worries about the global economy weighed on sentiment in December, the survey found, with less than 7% of companies giving a positive outlook for 2023.