Dubai: UAE’s private businesses put out more purchase orders – and even hired workers – during February, according to the latest Emirates NBM purchasing managers index (PMI). Average selling prices too firmed up for the first time in nearly 18 months as businesses passed on part of their costs to clients, the report adds.
The increase in prices was happening for the first time since October 2015 as businesses responded to protect margins.
“The rise in the UAE PMI to the highest level since September 2015 suggests that demand has strengthened, both domestically and abroad,” said Khatija Haque, Head of MENA Research at Emirates NBD. “Higher oil prices have likely contributed to improved sentiment and business activity over the last few months.”
The survey, sponsored by Emirates NBD and produced by IHS Markit, contains data collected from a monthly survey of business conditions in the UAE non-oil private sector.
New export orders also expanded during the month gone by, with companies responding by raising output further.
“Greater output requirements encouraged firms to purchase more inputs and hire extra staff,” the report adds. “Buying levels increased to the greatest extent since last September, whereas the pace of job creation softened to the weakest in four months.”
The Emirates NBD UAE PMI was up from 55.3 in January to a 17-month high of 56.0 last month. It was above its long-run average (54.5).
