Despite a broadly positive reading, Mena purchasing managers’ index (PMI) remained subdued in October against the backdrop of a resurgence of Covid-19 infections across the global and weaker oil prices, a report said.
“Whilst we are past the nadir in contraction across the region with easings in restrictions shaping the recovery, the PMI readings remain below pre-virus levels with labour market pressures continuing to linger, accentuating the constraints confronted with navigating the oil-virus shocks,” said the Mitsubishi UFJ Financial Group (MUFG), a Japanese financial services company, in its latest Mena Economic Weekly.
Overall, the October PMI readings signal that activity was mixed. Notwithstanding a confluence of austerity implementation, and ongoing virus containment measures, corporates remain optimistic in executing risk-reward opportunities.
However, employment pressures continue to trigger a surge in expatriate outflows which could undermine consumption and risk labour market shortfalls that could impede output, investment and overall real GDP growth, the report said. – TradeArabia News Service
