DUBAI: Growth in the United Arab Emirates’ non-oil private sector rebounded in August after expanding at its slowest pace in almost three years in July, a survey showed on Wednesday, supported by a pickup in new orders.
The seasonally-adjusted S&P Global UAE Purchasing Managers’ Index rose to 54.2 in August from July’s 53.7 as both output and sales growth strengthened.
The output subindex rose to 59.1 last month from 58.1 in July, lifted by new business and project work, but the rate of expansion was among the slowest in the past three years.
However, new order growth accelerated at the quickest pace in five months, with the subindex jumping to 59.1 in August from 57.5 in July.
While the UAE PMI picked up in August and “was consistent with a solid expansion in non-oil business conditions, it remained weaker than the levels recorded earlier in the year, as fewer companies reported uplifts in activity,” according to a statement.
UAE’s non-oil trade hit record 3.5 trillion dirhams in 2023
However, businesses in the non-oil private sector remained confident about the outlook over the next 12 months, with the degree of confidence increasing for the first time since May, according to the survey.
“However, firms should still be wary of their costs, as the survey data indicated another sharp increase in input prices in August,” the statement said, adding that ongoing price mark-ups have the potential to curb demand.
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