MENA PMIs June 2024

• The S&P Global PMI survey for the UAE fell to 54.6 in June, down from 55.3 in May. This is still well above the neutral 50.0 level and continues to indicate robust growth in the private non-oil sector, but nevertheless there is evidence that the pace of expansion is softening, and this was the lowest reading since February 2023. Activity expanded at the slowest pace in 17 months, falling below the 60 level for the first time since January 2023.
• The S&P Global Dubai PMI for June also slowed on the previous month, falling to a 16-month low of 54.3, down from 54.7 the previous month. New orders picked up to a three-month high but remained below the level seen prior to the heavy rains in April, while output appears to still be impacted by this dip as it expanded at a slower pace. Indeed, business activity rose at the slowest rate since September 2021.
• Saudi Arabia’s Riyad Bank PMI survey dipped to 55.0 in June, down from 56.4 the previous month. Output rose at a faster pace than seen in May and remains indicative of robust growth in activity. However, new orders slowed sharply, expanding at the slowest pace in nearly two and a half years. New export orders expanded at a faster pace in June, suggesting that the slowdown came from the domestic market.
• Egypt’s S&P Global PMI survey was only just shy of the neutral mark in June, at 49.9, up from 49.6 in June. While this was the 43rd month in a row that the index has been in contractionary territory, it was the strongest reading in exactly three years and on the current trajectory we would expect the survey to start showing a growing private sector in the coming months.

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