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This sentiment was largely aroused before the outbreak of the Russia-Ukraine conflict on February 24. Even so, UAE businesses say global shipment delays are as vexing as rising material prices.
“Local suppliers were able to make available inputs more quickly, and there are signs that supply issues are slowly easing as the world emerges from COVID-19 restrictions,” Owen said. “This should help companies navigate capacity and cost pressures in the coming months.”
The one-year outlook for business activity rose to a four-month high, the second highest since mid-2020. (Again, these data were taken before the outbreak in Russia and Ukraine.)
Businesses are having problems when it comes to job creation. They “strived to hire more workers in February as the latest data showed employment levels were largely unchanged,” the report said. “This, along with continued reports of some pandemic-related global shipment delays, means the company’s backlog has increased for the eighth consecutive month.”
Steady rises in raw material prices and transport costs are starting to weigh on input costs for businesses “even as inflation fell to its lowest level since November last year”. Going forward, these entities will have to factor in a surge in oil prices, which are now just a dollar or two away from hitting $120 a barrel.
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