Dubai: The UAE’s purchasing managers index (PMI) — a key indicator of business sentiment — hit a 19-month high of 56.2 during March.
It was 56 in February.
“The latest PMI survey for the UAE points to encouraging growth in the non-oil economy through the first quarter of 2017,” said Tim Fox, Head of Research and Chief Economist at Emirates NBD.
“What was particularly notable in this report was the degree of optimism among local firms about the potential for further improvements in client demand, which was evident in a strong rise in purchasing activity.”
The overall expansion was driven by sharper increases in output and new orders, as well as a record rise in stocks of purchases,” states the report.
“Firms raised their payroll numbers slightly, while there was evidence of ongoing pressure on operating capacity,” it adds.
But price data suggests the UAE’s non-oil private sector faced intense market competition, as the vast majority of firms registered no change in output charges despite increased cost pressures.
Growth in new order book volumes quickened to a 19-month high and was sharp overall. More construction activity and promotional activities were behind the rise in new orders. Exports also gained in March.
The rate of job creation was modest at best. Higher new order intakes prompted firms to scale up buying levels, so much so the rate of expansion was the most marked in over 18 months.
