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DUBAI, April 5 (Reuters) – Growth in non-oil business activity in the United Arab Emirates rebounded to its fastest pace in five months in March, buoyed by new orders and a business survey, a business survey showed on Wednesday. The fastest year of job growth in nearly seven years.
The seasonally adjusted S&P Global UAE Purchasing Managers’ Index (PMI) rose to 55.9 in March from 54.3 in February, the highest reading since November and still well above the 50 line that divides growth from contraction.
While the output sub-index held steady, the new orders sub-index accelerated to 56.2 from 55.4 in February, helped by strong demand and growth in tourism.
“The latest PMI reading of 55.9 for March reflects the concerted efforts of non-oil companies to raise production levels amid stronger demand,” said David Owen, senior economist at S&P Global Market Intelligence.
“Businesses are benefiting from relatively benign inflationary pressures, despite stronger market conditions and higher demand for staff driving faster wage growth.”
The employment sub-index rose to 52.6 in March, the fastest pace of growth since July 2016, as companies added workforces to manage orders.
The central bank last month raised its 2024 economic growth forecast to 4.3%, compared with a projected 3.9% growth this year, driven in part by non-oil exports and the housing and construction sectors.
The outlook for non-oil business activity next year is in line with prevailing sentiment since the start of the COVID-19 pandemic, the survey showed.
Reporting by Rachna Uppal; Editing by Hugh Lawson
Our standards: Thomson Reuters Trust Principles.
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