DUBAI, May 3 (Reuters) - An acceleration in the growth
of new orders led to a surge in non-oil business activity in the
United Arab Emirates in April, a business survey showed on
Wednesday.
The seasonally adjusted S&P Global UAE Purchasing Managers'
Index rose to 56.6 in April from 55.9 in March, the highest in
six months, signalling further improvement in the Gulf state's
non-oil economy.
The sub-index for New Orders jumped to 59.9 in April from
56.2 the previous month, the fastest pace of growth in new
business since November 2021, due mostly to domestic demand.
"The UAE PMI rose for the third month running in April to
signal an even stronger rate of expansion across the non-oil
economy, driven by rapidly increasing new orders and retreating
inflationary pressures," said David Owen, senior economist at
S&P Global Market Intelligence.
"Efforts to improve services and boost marketing also
underlined growth, according to panellists, and supported a
robust expansion in activity."
The Output sub-index rose to 62.7 last month, up from 62.2
in March and the highest pace of growth since October 2022, and
although employment activity softened from March, the sub-index
remained above 50, signalling continued growth in jobs.
The UAE, the second biggest economy among GCC members, will
grow 3.7% in 2023 and 4.0% next year, significantly lower than
7.6% last year, according to the latest Reuters poll of 16
economists. It has embarked on an economic transformation plan to
diversify revenue away from hydrocarbons and invest
significantly in non-oil activities, including positioning
itself as a global trade and logistics hub.
The rapid acceleration in new order growth also increased
business confidence among firms for the outlook over the next 12
months.
(Reporting by Rachna Uppal; Editing by Toby Chopra)
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