Dubai: A “solid improvement” has been sighted in UAE’s non-oil private sector activity during January, brought on by new projects and output, according to the latest Emirates NBD UAE PMI (purchasing managers index).
There are two main factors contributing to the sentiment - new order growth has accelerated to the fastest since September, while local businesses continue to “cut their charges, despite stronger cost inflation”.
According to Khatija Haque, Head of MENA Research at Emirates NBD, “The improvement in export demand last month is particularly welcome after a relatively soft 2016.”
In response to increased new business, companies raised their payroll numbers for the ninth straight month. 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.
The January reading weighed at 55.3 and rising from 55 in December. This is the highest reading since July last year.
“The upward movement in the headline index was supported by a sharper increase in new work during January, with new business rising at the quickest rate in 16 months,” the statement added. “Anecdotal evidence highlighted promotional activities, increased client demand and stronger underlying economic conditions as key factors boosting growth of new business inflows. Moreover, growth of new export orders quickened to a 14-month high.”
But on the jobs front, a further increase in payroll numbers failed to alleviate pressures on operating capacity. The vast majority of monitored firms (91 per cent) recorded no change in work-in-hand.
