DUBAI, March 3 (Reuters) - Growth in the United Arab
Emirates' (UAE) non-oil private sector in February accelerated
slightly from the previous month, supported by a pick up in
output growth, although the overall outlook remains uncertain, a
survey showed on Friday.
The seasonally adjusted S&P Global UAE Purchasing Managers'
Index (PMI) expanded to 54.3 in February from 54.1 in January,
in line with the series long run trend, and remained above 50
separating growth from contraction.
The output sub-index rose to 62.1 in February from 59.8 a
month earlier, and the highest since October 2022, the survey
showed, with respondents often attributing the increase to new
projects or growing client sales.
However, the rate of growth in new orders eased to its
lowest level since September 2021 on higher competition and
weaker exports. The new order sub index slowed to 55.4 in
February versus 56.0 in January.
"The UAE PMI gave conflicting signals for the non-oil
economy midway through the first quarter of the year," David
Owen, senior economist at S&P Global Market Intelligence, said.
"The chief upside to the index was a faster rate of output
growth, which accelerated for the first time in four months.
However...the latest upturn in new business was the slowest seen
for 17 months, suggesting the improved growth picture may be
short-lived."
Improved supply chain conditions contributed to a sharp
reduction in lead times, with the Suppliers' Delivery Time
sub-index - inverted to the PMI index - at 55.0 in February,
indicating the sharpest drop in lead times since September 2019.
Still, business confidence over the next 12 months remained
below the 2022 average.
(Reporting by Rachna Uppal; Editing by Toby Chopra)
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