The development within the non-oil business sector within the United Arab Emirates (UAE) slowed down barely in March, a survey confirmed on Wednesday as provide constraints attributable to transport disruptions within the Red Sea contributed to backlogs.
The seasonally adjusted S&P Global UAE Purchasing Managers’ Index (PMI) slowed to 56.9 in March from 57.1 in February however remained firmly above the 50 mark, signaling development.
The output subindex eased to 62.7 final month from February’s close to five-year excessive, however development momentum remained robust, lifted by new business and initiatives within the pipeline.
The backlogs of labor subindex rose to its joint highest degree of 59.8 – beforehand recorded in June 2018 – from 56.4 in February. Contributing elements included robust demand, administrative delays and Red Sea disruption to shipments, the survey stated.
“The overall picture for the UAE non-oil private sector remained rosy at the end of the first quarter,” stated David Owen, senior economist at S&P Global Market Intelligence.
“While the surge in backlogs is concerning as an indicator of business health, the pent-up demand should support activity growth for even longer once these issues are resolved.”
The new orders subindex rose to 61.5 in March from 60.4 in February, signaling continued robust demand.
Optimism in regards to the outlook amongst non-oil companies elevated in March to its greatest degree in six months, the survey confirmed.
Source: www.dailysabah.com