The outlook for non-oil business activity over the next year was in line with the general sentiment since the COVID-19 pandemic began, the survey showed. (Reporting by Rachna Uppal; Editing by Hugh Lawson)
DUBAI, April 5 (Reuters) - Non-oil business activity
growth in the United Arab Emirates bounced back to the fastest
pace in five months in March, a business survey showed on
Wednesday, supported by new orders and the quickest jobs growth
in almost seven years.
The seasonally adjusted S&P Global UAE Purchasing Managers'
Index (PMI) rose to 55.9 in March from 54.3 in February, the
highest reading since November, and remained well above the 50
mark separating growth from contraction.
While the output sub-index held steady, the new orders
sub-index accelerated to 56.2 from 55.4 in February, supported
by stronger demand and an increase in tourism.
"The latest PMI reading of 55.9 in March reflected concerted
efforts by non-oil companies to boost their capacity levels in
the face of strengthening demand conditions," David Owen, senior
economist at S&P Global Market Intelligence said.
"Firms are still benefiting from relatively mild
inflationary pressures, despite stronger market conditions and
increased staffing demand driving a quicker rise in wages."
The employment sub-index rose to 52.6 in March, the briskest
pace of growth since July 2016, as firms bolstered workforces to
manage orders.
The central bank last month raised its 2024 economic growth
forecast to 4.3%, compared with a projected 3.9% expansion this
year, driven in part by non-oil exports and the real estate and
construction sectors.
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