UAE PMI Index rose to 54.3% in February
2023.03.03 02:56
UAE PMI Index rose to 54.3% in February
By Kristina Sobol
Budrigannews.com – A survey released on Friday indicated that although the overall outlook remains uncertain, non-oil private sector growth in the United Arab Emirates (UAE) in February accelerated slightly from the previous month, supported by a pick up in output growth.
The S&P Global, adjusted for the season (NYSE:) In accordance with the series’ long-term trend, the UAE Purchasing Managers’ Index (PMI) increased to 54.3 in February from 54.1 in January. It remained above 50, which distinguishes growth from contraction.
According to the survey, the output sub-index increased to 62.1 in February from 59.8 a month earlier, the highest level since October 2022. Respondents frequently attributed the increase to new projects or increased client sales.
However, due to increased competition and weaker exports, the rate of growth in new orders slowed to its lowest level since September 2021. In February, the new order subindex decreased from 56.0 in January to 55.4.
David Owen, a senior economist at S&P Global Market Intelligence, stated, “The UAE PMI gave conflicting signals for the non-oil economy midway through the first quarter of the year.”
“A faster rate of output growth, which accelerated for the first time in four months, was the main benefit of the index. However, “the improved growth picture may be short-lived,” as the most recent upturn in new business was the slowest in 17 months.”
The Suppliers’ Delivery Time sub-index, which is inversed to the PMI index, reached 55.0 in February, the sharpest drop in lead times since September 2019. This was due to improved conditions in the supply chain.
Business confidence, however, remained below the 2022 average for the following year.
