Arab News, Thu, Apr 04, 2024 | Ramadan 25, 1445
UAE non-oil sector sees sharp rise in optimism despite supply pressures
Emirates:
Business conditions in the UAE non-oil private sector strengthened sharply in
March, with optimism reaching its highest point in six months, as indicated by a
survey.
According to the latest S&P Global Purchasing
Managers’ Index, the UAE’s PMI reached 56.9 in March, slightly lower than
February’s 57.1 but well above the 50 mark denoting expansion in activity.
David Owen, senior economist at S&P Global Market
Intelligence, said: “The overall picture for the UAE non-oil private sector
remained rosy at the end of the first quarter. The latest PMI reading of 56.9 in
March signaled a robust upturn in business conditions, with order book inflows
and activity levels still growing sharply.”
The US-based firm revealed that businesses in the
Emirates faced significant pressure on their workloads, with reports of
administrative delays and increased supply constraints due to the Red Sea
shipping crisis.
As a result, the data signaled the joint-fastest
accumulation of backlogs of work in the survey’s 15-year history.
“While the surge in backlogs is concerning as an
indicator of business health, the pent-up demand should support activity growth
for even longer once these issues are resolved,” added Owen.