Pick-up in new orders underpin #UAE non-oil private sector growth in March - PMI

Pick-up in new orders underpin UAE non-oil private sector growth in March - PMI

A rapid growth in new orders and resulting capacity pressures led UAE's non-oil private sector to increase staffing levels, according to a latest business survey.

The seasonally adjusted S&P Global UAE Purchasing Managers' Index (PMI) ticked up to 55.9 in March from 54.3 in February signaling a sharp and quicker improvement in the health of the sector.

The 1.6-point rise in the index was the largest month-on-month uplift since October 2021, "with all five sub-components providing a positive directional influence".

The Employment Index rose to its highest reading since July 2016. "The sub-indices for employment and stocks of purchases rose to 80- and 60-month highs respectively, signalling notable uplifts in staffing numbers and inventories in the latest survey period," said David Owen, Senior Economist at S&P Global Market Intelligence.

The expansion was underpinned by a robust increase in new order intakes, with the rate of growth accelerating to a five-month high, albeit remaining below the post-COVID-19 peak seen in late-2021. Similarly, output levels expanded at the quickest rate for five months.