Expo boosts UAE private sector growth

The United Arab Emirates’ non-oil private sector expanded at the fastest pace since June 2019 in October, recording its 11th straight month of growth as the Expo world fair began in commercial hub Dubai, a survey showed on Wednesday.

The seasonally adjusted IHS Markit UAE Purchasing Managers’ Index (PMI), leapt to 55.7 in October from 53.3 in September on the back of higher spending and tourism.

It was above the 50.0 mark that separates expansion from contraction and the first reading since the start of the pandemic that was above the series average, now at 54.1.

“The Expo 2020 finally began in the UAE at the start of October and brought a highly welcome upsurge in growth across the non-oil private sector,” said David Owen, economist at survey compiler IHS Markit. Expo was delayed for a year due to the Covid-19 pandemic.

The output sub-index rose to 61.1 in October from 57.1 in September while new orders also rose markedly compared to September’s reading.

– Reuters