UAE non-oil private sector growth rebounds in August amid increasing orders
(MENAFN) A survey released on Wednesday revealed a recovery in the UAE’s non-oil private sector growth in August, reversing the slowdown observed in July. The S&P Global UAE Purchasing Managers' Index (PMI) increased to 54.2 in August from 53.7 the previous month, indicating a strengthening in output and sales growth. The output sub-index, which reflects production levels, climbed to 59.1 points in August from 58.1 in July. This improvement was driven by heightened business activity and project developments, although the growth rate remained among the slowest seen over the past three years.
New order growth saw a notable acceleration, marking its fastest pace in five months. The sub-index for new orders surged to 59.1 in August, up from 57.5 in July, reflecting a significant uptick in demand. Despite this positive shift, the PMI data indicated that while business conditions in the non-oil sector improved, they still fell short of the stronger levels recorded earlier in the year. The survey also highlighted that fewer companies reported increases in activity compared to previous months.
Looking ahead, companies within the non-oil private sector showed renewed confidence in their future prospects, with optimism rising for the first time since May. However, the survey cautioned that rising input prices could pose a challenge, potentially impacting demand if costs continue to escalate. This caution underscores the need for businesses to manage their expenses carefully as they navigate the evolving economic landscape.
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