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DUBAI: The UAE’s private sector saw another round of acceleration in April, with new business orders hitting the highest level since November 2021, according to the latest PMI data from S&P Global.
Another big positive was that sales prices fell at the fastest pace since September 2020, helping demand. As expected, companies continued to hire given the increase in new orders.
“While the pace of job creation was slower than March’s fastest pace in nearly seven years, it was still above the survey trend,” said David Owen, senior economist at S&P Global Market Intelligence. “Rising demand and rapid capacity ramp-up Helping drive confidence in future activity rose for the fourth straight month and reached the highest level since September 2022.”
Inflationary pressures were lower across categories, driven by lower fuel costs. This has a trickle-down effect on consumer prices and business charges.
S&P Global said its PMI (Purchasing Managers Index) rose to 56.6 last month from 55.9 in March, pointing to a “strong improvement in non-oil economic performance in the (UAE) economy”. The index was slightly below its post-pandemic peak of 56.7 in August 2022.
Much to the delight of UAE business owners, this has come from new orders rather than cost containment or related measures.
In fact, “a relatively modest increase in business spending encouraged many companies to offer price promotions, which helped drive the biggest increase in sales since late 2021,” Owen said. “Efforts to improve service and boost marketing also underlined growth.”
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