Business activities and new orders have increased significantly, and have been promoted by reducing favorable conditions and cost pressure.
UAE’s non -petrified private business category continued to expand steadily in the early 2025, but the pressure and competitive challenges caused headwinds, and a survey stated on Wednesday. I did it. The seasonal adjusted S & P Global UAE purchase indexes were 55.0 in January, slightly lowered from the maximum value of 55.4 in December in December, but greatly exceeded the 50.0 mark.
Business activities and new orders show strong growth
Business activities and new orders have risen sharply by relieving preferred market conditions and cost pressure, but slightly slower. According to Reuters, the new order sub -index has been alleviated from 59.3 to 59.0 in January.
“Reducing activities and new business expansion in new businesses, and reducing the inflation of introduction costs suggests that the economy is in a healthy position,” said David Owen, a senior in S & P Global Market Intelligence. I mentioned it.
Read more: Experts predict the robust growth of the UAE economy in 2024 in global issues.
Inflation of introduction costs reaches a low price of 13 months
Inflation of introduction costs decreased to 13 months, and companies were able to increase their purchases. However, the capacity pressure continued, and the back log of work was rising at the fastest pace in eight months.
“The powerful competition and cash flow concerns caused by heavy backlogs seemed to be doubtful among companies that they could continue to increase their income,” Owen said in December 2022. Since then, he has stated that he has been at the lowest level.
Dubai’s other index has been slightly eased from 55.5 to 55.3 in December. This is because the company has reported the improvement of conditions and has expressed modest expectations for future activities.
Purchasing manager index (PMI) is an important economic indicator that reflects the general direction of manufacturing and service economic trends. This is edited and released every month by the Supply Management Research Institute (ISM), and functions as a spread index that summarizes the market status as perceived by the manager.
Important functions of PMI
Survey -based: PMIs are derived from monthly surveys sent to more than 400 companies in 19 major industries. In this survey, we cover various aspects of business conditions, such as new orders, inventory levels, production, delivery of suppliers, and employment. Index value: PMI is represented as 0 to 100. More than 50 PMI reading values indicate the economic expansion compared to the previous month, but reading below 50 means shrinkage. If you read 50 accurately, you can see that there is no change in the economic situation. Major indicators: PMIs are considered to be the main indicators of US overall economic activities, and provide valuable insights to business determination, analysts and investors on future economic conditions. Calculation: PMI is calculated using the following formula:
Importance of PMI
Business decisions: Corporate managers use PMI data to make decisions based on the expected demand based on information based on the expected demand. Investor: Investors are monitoring PMI trends because they often prior to changes in major economic indicators, such as GDP, industrial production, and employment.
