The UAE Purchasing Managers' Index (PMI) rose to 57.1 points in February, supported by the largest increase in output levels since mid-2019.
Non-oil business activity in the United Arab Emirates accelerated in February after slowing in the previous month, supported by higher output and business confidence, a survey showed on Tuesday.
Business.
The seasonally adjusted S&P Global UAE Purchasing Managers' Index (PMI) rose to 57.1 in February from 56.6 in January.
The production sub-index rose to 64.6 points from 62.0 points in January, the highest figure since June 2019, supported by new business, strong customer activity and marketing activities.
“Capacity pressures were evident, with backlogs rising at their fastest pace in nearly four years, as shipping disruptions in the Red Sea led to transport delays,” said David Owen, chief economist at S&P Global Market Intelligence.
Attacks by the Iran-aligned Houthi group on ships in the Red Sea have disrupted global shipping since November, forcing companies to divert ships to a longer, more expensive route.
The UAE's trade minister said last month that there had been no impact on the UAE so far.
The new orders sub-index slowed to 60.4 in February from 61.9 the previous month, and while this still points to strong demand, the pace of growth is the weakest since last August, which some participants attributed to increased competition.
Confidence in the outlook for the next 12 months accelerated to a four-month high, supported by strong market conditions, higher profits and new client projects, the survey said.
