ALBAWABA – Despite the slight decline in the United Arab Emirates’ (UAE) Standard and Poor (S&P) Purchasing Managers Index (PMI), from 56.6 points in April, to 55.5 points in May, UAE private sector growth remained strong, with the May index still higher than the long-run 54.2 average.
Overall, UAE’s PMI index has been edging up since February 20023, according to data from Trading Economics.
The latest index reading pointed to strong performance across non-oil sectors, driven by upturns in both active and new orders.
New business intakes slowed only slightly from April’s 17-month high, Trading Economics reported, against rising domestic demand. Whereas export sales remained unchanged.
Also, employment grew at the second fastest rate since July 2016, data provided by the economic monitor indicated.
According to Dubai-based online newspaper Al Khaleej Al Eqtisadi, optimism improved over the past five months hitting the highest level since October 2021, with expectations of a continued demand momentum.
The PMI is a composite index designed to give an accurate overview of operating conditions in the non-oil private sectors of the economy.
UAE’s neutral baseline level is set at 50.0 point, the newspaper underlined.
On the other hand, demand for manufacturing and production inputs rose in May, despite the overall decline in past months, Al Khaleej Al Eqtisadi reported.
Finally, sales prices of non-oil companies continued to decline in May, albeit at a slightly weaker pace than April's record level, which was the largest in 31 months.
