{"id":98593,"date":"2024-12-09T00:00:00","date_gmt":"2024-12-09T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/uae\/non-oil-business-activity-marginally-expanded-in-november\/"},"modified":"2024-12-09T00:00:00","modified_gmt":"2024-12-09T00:00:00","slug":"non-oil-business-activity-marginally-expanded-in-november","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/uae\/2024\/12\/09\/non-oil-business-activity-marginally-expanded-in-november\/","title":{"rendered":"Non-oil business activity marginally expanded in November"},"content":{"rendered":"

Non-oil business activity slightly expanded again in November<\/strong> on the back of robust demand conditions and competitive pricing, according to S&P Global\u2019s UAE Purchasing Managers\u2019 Index (pdf)<\/a>. The UAE\u2019s PMI rose marginally to 54.2 from 54.1 in October<\/a>, yet still remaining above the 50.0 threshold separating growth from contraction. <\/p>\n

Business output and activity levels rose due to the sharpest increase in new order volumes since August.<\/strong> This rise in demand occurred due to businesses acquiring new customers through marketing initiatives and price reductions.<\/p>\n

Though employment is still on a growth trajectory, elevated capacity pressures caused its growth to \u201cslip to a 31-month low\u201d <\/strong>and input purchases to increase at the \u201cslowest pace since July 2023,\u201d according to S&P Senior Economist David Owen. <\/p>\n

Costs are climbing at a slightly faster pace than the long-run trend<\/strong>, which was mainly attributed to increases in material, technology, fuel, machinery, and maintenance prices. On the other hand, firms chose to offer price discounts to remain competitive which led them to marginally lower their fees.<\/p>\n

Backlogs are still piling up despite logistical improvements:<\/strong> Several businesses didn\u2019t accurately anticipate their future activity growth, so the increase in orders caused delays in the completion schedule, causing a rise in backlogs. However, supplier delivery times improved, leading to a minor increase in overall inventories, with new purchases being consumed by present output requirements.<\/p>\n

Business sentiment leans toward uncertainty<\/strong> as confidence levels in future activity reached its \u201csecond lowest\u201d since early 2023, Owen said. Meanwhile, experts are arguing that markets are becoming increasingly crowded, subduing pricing power. <\/p>\n

MEANWHILE, IN DUBAI- <\/p>\n

Dubai\u2019s PMI rose on a sharper incline:<\/strong> The emirate\u2019s PMI increased to 53.9 in November, up from 53.2 in October due to the fastest increase in new order inflows since August and the highest across the country. Business activity boomed as lower prices drove a rise in sales levels.<\/p>\n

Output expectations declined to a 23-month low leading to a drop in employment levels for the first time since April 2022.<\/strong> This development led to a reduction in margins due to rising purchase prices. Meanwhile, inventories were reduced for the first time since July.<\/p>\n

ELSEWHERE IN THE REGION- <\/p>\n