Business conditions in the UAE non-oil private sector strengthened sharply in March, with optimism reaching its highest point in six months, as indicated by a survey.
According to the latest S&P Global Purchasing Managers’ Index, the UAE’s PMI reached 56.9 in March, slightly lower than February’s 57.1 but well above the 50 mark denoting expansion in activity.
David Owen, senior economist at S&P Global Market Intelligence, said: “The overall picture for the UAE non-oil private sector remained rosy at the end of the first quarter. The latest PMI reading of 56.9 in March signaled a robust upturn in business conditions, with order book inflows and activity levels still growing sharply.”
The US-based firm revealed that businesses in the Emirates faced significant pressure on their workloads, with reports of administrative delays and increased supply constraints due to the Red Sea shipping crisis.
As a result, the data signaled the joint-fastest accumulation of backlogs of work in the survey’s 15-year history.
“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,” added Owen.
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