Cairo – Mubasher: Egypt’s business activity grew at its fastest pace in almost six years, buoyed by a rise in new orders, while Saudi Arabia saw a second month of milder improvements, Bloomberg said on Tuesday.
In the UAE, non-oil private sector activity fell below the threshold of 50 that separates growth from contraction for the first time since August, according to IHS Markit’s Purchasing Managers’ Index (PMI).
Concerns over further unemployment and renewed lockdowns continued to dog the three major Arab economies.
In October, Egypt’s PMI rose modestly to 51.4, the strongest reading since December 2014 and the second consecutive month of growth after reaching 50.4 in September. New order growth was the highest in over six years, but employment dropped.
The PMI in Saudi Arabia, the region’s largest economy, increased to the highest in eight months, reaching 51 in October from 50.7 in September. Job losses accelerated at the fastest pace since June.
The UAE’s PMI reading fell to 49.5 from 51 in the previous month. New business dropped for the first time since May while output growth and job losses continued.
Maintaining the rebound across the three economies will be a challenge as tough new restrictions are imposed around the world to contain COVID-19, Bloomberg added.
Confirmed coronavirus cases in the kingdom and Egypt have declined since their peak in June, while in the UAE, cases have gained momentum over October, rising to the highest on record.
