{"id":71281,"date":"2023-06-06T00:00:00","date_gmt":"2023-06-06T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/logistics\/2023\/06\/06\/non-oil-private-sector-activity-across-gcc-and-mena-countries-show-positive-signs-of-growth-in-may\/"},"modified":"2023-06-06T00:00:00","modified_gmt":"2023-06-06T00:00:00","slug":"non-oil-private-sector-activity-across-gcc-and-mena-countries-show-positive-signs-of-growth-in-may","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/logistics\/2023\/06\/06\/non-oil-private-sector-activity-across-gcc-and-mena-countries-show-positive-signs-of-growth-in-may\/","title":{"rendered":"Non-oil private sector activity across GCC and MENA countries show positive signs of growth in May"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"\"> <\/span><span style=\"font-weight:700\">Non-oil private sector activity in Qatar grew at ever-faster rates, while UAE and <\/span><span style=\"font-weight:700\">KSA saw slower growth as Egypt\u2019s shows positive signs of improvement: <\/span><span style=\"font-weight:400;\">Purchasing Manager Indices (PMI) tracking non-oil private sectors in UAE, KSA, Qatar, and Egypt were a mixed bag but with all-round hopeful notes. Domestic demand continued to drive growth in UAE and KSA but at a slower pace than previous months. Qatar, on the other hand, saw ever-faster growth. Egypt\u2019s contraction slowed for the second time in as many months with further evidence that demand-corroding inflation was on the mend.<\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:700\">Non-oil private sector in the UAE in May remained in growth territory, albeit at a slower pace than in <\/span><span style=\"text-decoration-skip-ink:none;-webkit-text-decoration-skip:none;font-weight:700;\"><a href=\"https:\/\/enterprise.news\/logistics\/en\/news\/story\/45f79eab-939e-44c8-a5e8-4b74843646e2\" style=\"\">April<\/a><\/span><span>, as local demand continued to drive new orders and robust supply chains kept cost pressures in check, according to S&P Global\u2019s UAE <\/span><span style=\"text-decoration-skip-ink:none;-webkit-text-decoration-skip:none;\"><a href=\"https:\/\/ent.news\/2023\/6\/222.pdf\" style=\"\">PMI (pdf)<\/a><\/span><span style=\"font-weight:400;\">. The UAE\u2019s PMI reading in May came in at 55.5, lower than the 56.6 posted for April. Despite being at a three-month low, the index is above the long-run average of 54.2.<\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:700\">Remember:<\/span><span style=\"font-weight:400;\"> The all-important 50 mark is the threshold separating contraction from growth. Anything above 50 denotes expansion and anything below indicates contraction.<\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:700\">Business growth mostly came from rising domestic demand: <\/span><span style=\"font-weight:400;\">Boosted sales in May buoyed the index, with new orders only slightly below April\u2019s 17-month record, the report observed. Firms cited new clients, marketing campaigns, and boosted sales from travel and tourism as driving new orders. Growth was generated by domestic clients, as export orders remained flat. Despite greater business activity and the fastest rate of hiring since July 2016, backlogs continued to accumulate. New orders and expectations that costs will remain stable led to the best business outlook since October 2021.<\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:700\">Saudi Arabia\u2019s non-oil private sector in May also extended its growth, but at a slower pace than April,<\/span><span style=\"\"> according to the Riyad Bank\u2019s Saudi Arabia <\/span><span style=\"text-decoration-skip-ink:none;-webkit-text-decoration-skip:none;\"><a href=\"https:\/\/ent.news\/2023\/6\/232.pdf\" style=\"\">PMI (pdf)<\/a><\/span><span style=\"font-weight:400;\">. The kingdom saw its PMI reading for May ease to 58.5, slightly below April\u2019s 59.6 but above the 50.0 threshold and the reading\u2019s long-run 56.9 average. <\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:700\">New orders grew, but at a slower pace than April\u2019s eight-and-a-half-year record<\/span><span style=\"font-weight:400;\">, the report said. The slowdown from April comes despite recent gains in sales to foreign clients. Surveyed respondents cited a better economy, increased travel, tourism, and investments as drivers for new orders. Business activity also increased but at the slowest rate seen so far in 2023. There was also anecdotal evidence for vendors making quicker deliveries, indicating an improvement in supply chains which in turn helped drive an upturn in inventories at the quickest rate since August 2022. <\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:700\">Greater hiring also helped firms erode Saudi businesses\u2019 backlogs.<\/span><span style=\"font-weight:400;\"> All in all, businesses retained a strongly positive outlook for the year ahead, citing improving market conditions, a robust sales pipeline, and supportive government policies. Nevertheless, a more competitive environment meant that sentiments were lower than April, falling to their lowest in one year. <\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:700\">Activity in Qatar\u2019s non-oil sector accelerated for the sixth time in seven months<\/span><span style=\"\">, according to the Qatar Financial Center (QFC<\/span><span style=\"\">) <\/span><span style=\"text-decoration-skip-ink:none;-webkit-text-decoration-skip:none;\"><a href=\"https:\/\/ent.news\/2023\/6\/240.pdf\" style=\"\">PMI (pdf)<\/a><\/span><span style=\"font-weight:400;\"> released yesterday. Qatar\u2019s PMI came in at 55.6, higher than April\u2019s 54.4. The latest number is the highest since July 2022 and is well above the long-run average of 52.3, with the output, new orders, employment, and purchasing components of the index all seeing faster growth.<\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:700\">Growth in output and new orders boosted the index, with hiring and stocks of purchases also contributing to the improvement<\/span><span style=\"font-weight:400;\">, the report said. New orders grew at their fastest rate in ten months, with businesses reporting new contracts with new and retained customers as well as new product offerings and sales from tourism. Hiring rose at its fastest rate since July 2022, which helped firms further erode their backlogs of activity. Despite an increase in demand for production inputs, supply chains managed to cope with the upturn and lead times saw further cuts. Outlook for the coming year was also the most hopeful in three months. <\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:700\">Business activity in Egypt is also showing some signs of improvement: <\/span><span style=\"\">Contraction in Egypt\u2019s non-oil private sector slowed to its softest pace since February 2022 in May, according to S&P Global\u2019s Egypt <\/span><span style=\"text-decoration-skip-ink:none;-webkit-text-decoration-skip:none;\"><a href=\"https:\/\/ent.news\/2023\/6\/236.pdf\" style=\"\">PMI (pdf)<\/a><\/span><span style=\"font-weight:400;\">. The country\u2019s PMI rose to 47.8 in May from 47.3 in April, marking a second consecutive month of improvement but remaining below the 50.0 mark that separates growth from contraction. <\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:700\">Softer price hikes helped the picture:<\/span><span style=\"font-weight:400;\"> \u201cCompanies signaled that input cost pressures were again much softer than at the beginning of the year, as a period of stabilization in the EGP versus the USD helped to cool import markets. This led to another relatively soft rise in selling charges, providing some hope that consumer price inflation will fall again in May,\u201d said David Owen, senior economist at S&P Global Market Intelligence, who also remarked that despite the index remaining in negative territory, recent gains indicate that \u201ccurrent economic headwinds were beginning to dissipate.\u201d<\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:700\">Demand conditions on the up?<\/span><span style=\"font-weight:400;\"> Output levels continued to decline but at their softest rate since the start of 2021, while new orders dropped at their slowest rate in seven months. Business activity came close to stabilizing in the manufacturing and services sectors. Business intakes in the service sector rose for the second time in three months, suggesting that consumer demand could finally be on the mend.<\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:700\">Nevertheless, outlook remains among the lowest on record<\/span><span style=\"font-weight:400;\">, with only 6% of the survey respondents expecting an increase in output over the next 12 months. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Qatar\u2019s non-oil business sector grew, while the UAE and Saudi Arabia saw slower improvement and Egypt began to round the bend<\/p>\n","protected":false},"author":1,"featured_media":71282,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[141],"tags":[17,139,140,66],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-71281","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-purchasing","tag-enterprise-logistics","tag-pmi","tag-purchasing","tag-supply-chain","wpautop","entry"],"acf":{"mongo_id":"e10372f5-7062-4956-b377-e0ab184b8f2a","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2023\/6\/182.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Non-oil 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