UAE's Non-Oil Businesses Surge in February, Driven by Strong Output and New Orders

UAE, 05 March, 2024 : In February, the UAE's non-oil businesses surged forward with remarkable growth, as indicated by the S&P Global UAE Purchasing Managers' Index (PMI), which climbed from 56.6 in January to 57.1. This surge, the most significant since June 2019, was propelled by heightened output levels and a surge in new orders driven by robust market demand. Businesses reported their highest output levels since mid-2019, with approximately 38% of monitored firms noting a month-on-month increase, largely attributed to heightened new business and client activity.

Despite the growth, February also brought about capacity pressures, particularly due to disruptions in shipping lines in the Red Sea. These disruptions began impacting local supply chains, although vendor performance showed improvement, albeit at a slower rate than in previous months. Employment levels surged in February to accommodate increasing workloads, marking the fastest pace of expansion since May.

Businesses remain cautiously optimistic about the year ahead, although concerns persist regarding market saturation potentially dampening sales growth. However, the overall PMI data reflects a promising trajectory for non-oil businesses in the UAE, underlining their resilience and potential for sustained growth amidst dynamic market conditions.

Source : www.zawya.com