[Economie] The continued strength of the recovery of the UAE economy during September

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https://www.alittihad.ae/news/الاقتصادي/4226450/استمرار-قوة-تعافي-اقتصاد-الإمارات-خلال-سبتمبر

 

 

Mustafa Abdel Azim (Dubai) The UAE economy continued the pace of recovery that it started several months ago, recording last September a strong increase in new business, production and demand, according to the results of the Purchasing Managers' Index issued today.
The results of the index showed a remarkable improvement in the expectations of companies to the highest level in three months, after they expected a recovery in activity to coincide with Expo 2020 Dubai and the easing of measures related to the Covid-19 pandemic.
The UAE IHS Markit's headline Purchasing Managers' Index - which measures operating conditions in the non-oil private sector economy - decreased from 53.8 points in August to 53.3 points in September, but was higher than the 23-month readings in which Leading up to July, the index was flat in its growth range, having crossed the neutral level of 50.0 points in each of the last 10 months.
The production index, one of the five components of the PMI, had the strongest expansionary effect in September, as the latest data indicated a noticeable rise in activity levels, while new orders rose strongly in September, and the growth rate remained largely unchanged from the previous study.
According to the participating companies, the continued recovery in customer demand and contracts related to Expo 2020 Dubai contributed to this rise, and export orders returned to growth after declining in all months since May.
Some companies indicated that price cuts encouraged customers to place more orders. It is worth noting that the average prices of products in the sector are not
It is worth noting that the average prices of products in the non-oil sector decreased at the fastest rate since November 2020.
According to the results of the study, the backlog rose to its maximum in a year and a half in September, as companies often reported not having enough capacity to meet new demands while working on existing projects.
Purchasing activity rose for the third month in a row, while companies saw a slight increase in supplier delivery dates after a renewed performance improvement during August, and higher raw material prices continued to put upward pressure on input costs in September, although the rise The latter was the lowest in four months.
 The decline in the rate of inflation helped some companies reduce their prices, and the expectations of activity for the next year improved slightly in September, after falling to its lowest level in five months in August. The positive outlook was mainly related to the expected recovery in demand in light of the easing of restrictions, and some companies also expect an increase in sales due to the easing of travel restrictions related to Covid-19 and Expo 2020.
David Owen, an economic researcher at IHI Market, said: “With the start of Expo 2020 Dubai, the UAE economy appears to be in good shape, in light of the continued strong improvement in non-oil business conditions, as companies continued to witness a recovery in demand after the epidemic, noting The easing of global travel procedures helped support the growth of new business.