UAE's non oil business activity picks up in February, PMI survey shows
Reuters
Published Mar 04, 2024 11:19PM ET
Updated Mar 04, 2024 11:42PM ET
ABU DHABI (Reuters) - Non oil business activity in the United Arab Emirates accelerated in February after a slowdown the previous month, helped by a rise in output and business confidence, a survey showed on Tuesday.
The seasonally adjusted S&P Global UAE Purchasing Managers' Index rose to 57.1 in February from 56.6 in January.
The output sub-index surged to 64.6 from 62.0 in January, the highest figure since June 2019, lifted by new business, stronger client activity and marketing activities.
"Capacity pressures were apparent however, with backlogs of work rising at their fastest pace in nearly four years, as Red Sea shipping disruption fed through into transport delays," said David Owen, senior economist at S&P Global Market Intelligence.
Attacks on vessels in the Red Sea by the Iran-aligned Houthis have disrupted global shipping since November and forced firms to re-route journeys which are longer and more expensive.
There had been no impact on the UAE so far, its trade minister said last month.
The new orders sub-index slowed to 60.4 in February, from 61.9 the month before, and while this still signals strong demand, the pace of growth was the weakest since last August, which some respondents attributed to greater competition.
Confidence in the outlook over the next 12 months accelerated to a four-month high, supported by stronger market conditions, higher profits, and new client projects, the survey said.
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Written By: Reuters
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