Standard & Poor's Global: For the second time.. the fastest pace in 2022 with the recovery of business

A strong increase in the activity of the non-oil private sector in the UAE during July

Non-oil producing companies increased their production capacity during July.

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A survey revealed a strong increase in the activity of the non-oil private sector in the UAE, during last July, as the rate of expansion was very sharp, and was the fastest repeat rate since the beginning of this year until now, which is comparable to what was recorded in May.

The survey, whose results were published yesterday, showed that the activities of companies operating in the private sector grew last month with the second fastest pace this year, with commercial activity reviving due to strong demand and high sales amid some discounts.

The seasonally adjusted Standard & Poor's Global Purchasing Managers' Index in the UAE rose to 55.4 points in July from 54.8 points in June, which is slightly lower than the May reading of 55.6 points, at the fastest pace of growth this year, and still well above the average Series since 2009 of 54.1 points.

The production sub-index rose over the past month to 62.5 points from 60.7 points in June, the highest level this year, and above the series average of 57.5 points.

July data showed an increase in production capacity among non-oil producing companies, as suspended work increased at the fastest pace since March 2020, indicating that in response to the increasing backlog, companies continued their efforts in hiring.

She pointed to the increase in international demand for non-oil production from the UAE at the beginning of the third quarter of this year, and the rate of expansion was strong and very similar to what was witnessed in June.

The non-oil producing companies said that suppliers were generally able to deliver purchased goods on time during July, with suppliers improving for the 10th consecutive month.

Continuing to purchase production inputs and shortening delivery times helped lead to a further increase in stocks of raw materials and semi-finished materials in non-oil producing companies in the UAE.

"Non-oil UAE companies started the third quarter on a stronger basis, according to the PMI data for July," said David Owen, an economist at Standard & Poor's Global Market Intelligence, which conducted the survey.

He added, "With the strengthening of demand, operational capabilities came under pressure, but companies responded to this pressure by continuing their recruitment efforts."

UAE companies have continued to hire in response to increased business.

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