Team Blitz India
AS per a recently held survey conducted by the S&P Global UAE Purchasing Managers, business activity across UAE’s nonoil sector rose at the fastest pace in nearly five years in February after a slowdown in January.
The output growth was strongest since June 2019 amid robust demand momentum despite supply constraints caused by the Red Sea shipping disruption.
The seasonally adjusted S&P Global UAE Purchasing Managers’ Index (PMI) rose to 57.1 in February from 56.6 in January, while 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.
UAE achieved “a historic first” in 2023 as its robust national economy reached a milestone in its diversification drive with the non-oil sector accounting for 73 per cent of the country’s total GDP. This achievement reflects the confidence of the private sector and investors around the world in the UAE’s investment environment. It is predicted that the Arab world’s second-largest economy would grow by up to 5.0 per cent in 2024.
The UAE PMI continued to signal strong upward momentum in the non-oil economy at the start of 2024, with February’s reading of 57.1 up from 56.6 in January. One of the PMI’s largest components, the Output Index, rose to its highest level since June 2019, pointing to a rapid expansion of business activity as firms look to take full advantage of strong market growth and maintain a competitive edge.
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.
Overall supply chain performance improved at the weakest rate since last July but still improved, suggesting that the impact on vendors is so far limited Attacks on vessels in the Red Sea have disrupted global shipping since November and forced firms to re-route journeys that are longer and more expensive. However, overall supplier performance was still positive, as many firms reported the quicker distribution of inputs when requested.
