UAE: PMI increases in October
The S&P Purchasing Managers Index (PMI) rose to 56.6 in October, up from Septembers 56.1. As such, the index moved further above the 50.0 no-change threshold, signaling a stronger improvement in non-oil private sector operating conditions from the prior month.
Octobers improvement came on the back of stronger output growth—the second-highest since July 2019—bolstered by solid client demand. Additionally, lower prices, better services and the upcoming FIFA World Cup in Qatar reportedly propelled new orders to expand at a quicker pace in October. These increases more than offset new export orders growing at a more moderate pace in the month. The improvement in output led firms to onboard staff at the strongest pace since July 2016. With regards to prices, input cost inflation was mild, while output charges were reduced once again in order to attract clients. Less positively, firms sentiment for the upcoming year weakened in October.