(MENAFN) A recent survey has unveiled encouraging trends in the business landscape of the United Arab Emirates (UAE), particularly within its non-oil private sector, indicating a robust pace of improvement throughout March. The surge in new order inflows has notably propelled production levels upwards, underscoring a positive trajectory for businesses operating outside the oil sector.
Data from the S&P Global Purchasing Managers' Index study highlights the significant challenges faced by companies in the UAE, including mounting pressure on workloads. Reports of administrative delays and heightened supply restrictions, exacerbated by the ongoing shipping crisis in the Red Sea, have intensified operational strains. Consequently, the survey recorded the swiftest accumulation of backlog orders in nearly 15 years, second only to the record set in June 2018.
Despite a marginal decline from 57.1 points in February to 56.9 points in March, the UAE's non-oil private sector PMI, as reported by S&P Global, remains comfortably above the neutral threshold of 50 points. This indicates a robust improvement in operational conditions across non-oil producing sectors, bolstering confidence in the economic outlook.
Moreover, the survey reveals a noteworthy uptick in business optimism, reaching its highest levels in six months. Companies reported a modest increase in expenses, while grappling with deteriorating profit margins. Intensified competition has contributed to the sharpest decline in product prices witnessed in 3-1/2 years, signaling a challenging environment for maintaining profitability amidst heightened market pressures.
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