UAE non-oil sector continues to expand sharply in January

UAE non-oil sector continues to expand sharply in January

After reaching near record highs at the end of 2021, growth begins to slow down, according to IHS Markit

Published: Thu 3 Feb 2022, 8:52 AM

UAE's non-oil sector continued to expand sharply in January, according to the latest PMI survey data released on Thursday.

Business activity was once again boosted by strong sales from the Expo 2020 in January, alongside a broad recovery in economic conditions from the pandemic. The latest survey data showed that a sharp rise in new work led to a further marked expansion in output across the non-oil sector.

The headline seasonally adjusted IHS Markit UAE Purchasing Managers' Index (PMI), a composite indicator designed to give an overview of operating conditions in the non-oil private sector economy, dropped from 55.6 in December to 54.1 in January.

The indices vary between 0 and 100, with a reading above 50 indicating an overall increase compared to the previous month, and below 50 an overall decrease.

The January PMI signalled a strong improvement in operating conditions, but one that was the slowest seen since September last year.

However, after reaching near-record highs at the end of 2021, there were signs that growth had begun to slow down – rates of expansion in both activity and