What is the reason for the decline in the performance of the private sector in the UAE and Saudi Arabia?
Due to the high number of corona injuries.
How much did PMI fall in the UAE?
It fell from 51.2 points in January to 50.6 points last February.
A report by the global research institute “IHS” Market monitored that the performance of the non-oil private sector in the UAE and Saudi Arabia last month was affected by the pressure of the unrest associated with the increase in Corona injuries.
In a report, today, Wednesday, the corporation showed that unrest increased in the UAE’s non-oil-producing private sector in February, due to the high number of cases of the virus.
The report indicated that the UAE PMI fell from 51.2 points in January to 50.6 points in February.
The report said: “The index remained above the neutral level due to the sub-component of production, which continued to indicate an increase in commercial activity.”
He indicated that a number of companies commented on the decline in demand rates due to the tightening of restrictions, in areas such as retail and services.
The report indicated that new businesses failed to rise for the first time in four months, which contributed to a modest increase in production and the stability of the level of employment largely unchanged.
The companies indicated that global supply chain delays affected the UAE economy in February, as the delivery dates for production inputs were prolonged at the fastest rate since last April.
Since the first week of last month, the UAE imposed some restrictions on the capacity of workplaces and recreational activities, and closed cinemas, to reduce the rise in cases.
On Saudi Arabia, the report showed that the level of growth retreated to its lowest level in four months, with the continued improvement of economic conditions in February.
And that employment rates have delayed the recovery of production again, and companies have reduced the number of jobs for the third month in a row, despite the continued increase in the purchases of production supplies and stocks.
The Kingdom’s PMI scored about 53.9 points in February, compared to 57.1 points in the previous month, according to the report.
The report showed that demand from foreign customers increased at a modest pace, and companies bought more production requirements.
In February, Saudi Arabia tightened precautionary measures to confront the Corona epidemic for a period of 30 days, with indications of an increase in the epidemic curve in some regions of the Kingdom.
Last week, it also suspended entry to the Kingdom for the purposes of Umrah and visiting the Noble Prophet’s Mosque “temporarily”, to provide maximum protection from the Corona virus.
The PMI is based on five main pillars, which are new orders, inventory levels, production, supplier delivery volume, and employment and work environment.