The private sector expanded at the fastest pace in seven months, closely monitored data showed, putting the economy on track to “avoid recession”.
Despite Houthi attacks disrupting trade through the Red Sea and significantly increasing transportation costs, the latest ‘flash’ composite Purchasing Managers Index from S&P Global and the Chartered Procurement and Supply Association was 52.1 for January. It rose from 52.5 in January. Last month’s sales exceeded city analysts’ expectations.
This indicates that the index has remained above the 50 point mark, which is the dividing line between growth and contraction, for three consecutive months. Improvements in production in both the services and manufacturing sectors boosted overall private sector growth.
Growing expectations for lower inflation and interest rates