UAE experiencing difficulties in Oil industry
2023.02.03 02:56
UAE experiencing difficulties in Oil industry
By Ray Johnson
Budrigannews.com – According to a survey released on Friday, sentiment toward future activity was influenced by weaker global economic conditions, which contributed to the fact that growth in the non-oil private sector of the United Arab Emirates (UAE) fell to a 12-month low in January.
The S&P Global, adjusted for the season (NYSE:) The UAE Purchasing Managers’ Index (PMI) dropped to 54.1 in January, which was the lowest reading since January 2022 and a slight improvement from 54.2 in December.
The output sub-index, which stood at 58.8 in December, continued to show strong growth in non-oil private sector activity.
David Owen, an economist at S&P Global Market Intelligence, stated:
“The results showed that the non-oil sector remains in good health and in particular compares positively against a global economic slowdown towards the end of 2022.”
Owen continued:
“However, weak global conditions weighed on export demand in January, as businesses saw foreign sales decrease at the fastest rate since June 2021.”
The sub-index went up from 55.5 in December to 56.0 in January, marking a three-month high in new orders.
The index fell below the 50.0 neutral threshold for the second month in a row, reaching 47.5, its lowest level since June 2021, when it was at 49.0 in December. However, the decline in new export orders continued.
The employment index increased from 50.6 at the end of 2022 to 51.3 in January, indicating an acceleration in job creation.
According to the survey, staff costs remained unchanged while input prices remained broadly stable in January due to strong supply chains, lower transportation and energy costs, and these factors.
However, as optimism regarding output prospects remained low, only 9% of survey respondents anticipated growth over the next year.
More:
German manufacturers solved problems shortage materials
South Korea losing control over inflation due to growth
