UAE - Mubasher: The seasonally adjusted Purchasing Managers' Index (PMI) of the UAE increased to 56.9 in June 2023 from 55.5 last May, according to the latest S&P Global PMI data.
The reading highlighted solid business conditions, as the health of the non-oil private sector enhanced in each of the past 31 survey periods.
Non-oil firms in the UAE witnessed growth gathering momentum at the end of the second quarter (Q2) of 2023, with output and new orders increasing rapidly.
New business levelled up during June, with the rate of expansion hitting a four-year high. Total new orders were supported by an increase in new business from abroad.
The rise in new orders was driven by stronger customer demand, provided with further momentum by promotional offers to help secure sales.
Employment also increased, enlarging the current sequence of job creation to 14 months. Higher staffing levels were attributed to surging workloads and the recruitment of additional sales workers.
Andrew Harker, Economics Director at S&P Global Market Intelligence, said: "The ability of firms to secure increasing volumes of new business continued unabated in June, with growth of new work actually accelerating to a four-year high.”
“Some of this growth was predicated on the offer of discounts to customers, however, which may not be sustainable in the long-term given that input costs are rising,” Harker added.
He underlined: "The extent of the inflows in new work was such that backlogs of work continued to rise in June despite a ramping up of activity, further job creation, and an expansion of purchasing activity. This should therefore support further increases in staffing levels in the months to come as firms try to keep on top of workloads.”
The official concluded: "All in all, the non-oil private sector remained on a strong footing at the midway point of the year, and is well placed for further growth in [the second half ] H2."
