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DUBAI, July 5 (Reuters) – Business activity in the United Arab Emirates’ non-oil sector expanded in June as new orders rose at the fastest pace in four years, a survey showed on Wednesday.
The seasonally adjusted S&P Global UAE Purchasing Managers’ Index rose to 56.9 in June from 55.5 in May and remained above the 50-mark, pointing to a pickup in economic activity.
The new orders sub-index jumped to 61.0, the fastest pace of expansion since June 2019, driven by strong customer demand and partly due to competitive prices and promotional offers.
“This growth is partly based on discounts being offered to customers, but given rising input costs, it may not be sustainable in the long run,” said Andrew Harker, economic director at S&P Global Market Intelligence.
“All in all, the non-oil private sector remains on strong footing through the middle of the year and is well positioned for further growth in the second half of the year,” Harker said.
The output sub-index rose to 64.1 after falling to 62.3 in May, but headline input prices also rose sharply, rising to 52.1 in June, the most since July 2022.
While non-oil companies were generally optimistic about the outlook for the next 12 months, sentiment declined in June from the previous month and remained below the series average.
Reporting by Rahna Uppal; Editing by Susan Fenton
Our standards: Thomson Reuters Trust Principles.
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