{"id":87296,"date":"2024-01-08T00:00:00","date_gmt":"2024-01-08T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/uae\/non-oil-private-sector-holds-four-year-high-growth\/"},"modified":"2024-01-08T00:00:00","modified_gmt":"2024-01-08T00:00:00","slug":"non-oil-private-sector-holds-four-year-high-growth","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/uae\/2024\/01\/08\/non-oil-private-sector-holds-four-year-high-growth\/","title":{"rendered":"Non-oil private sector holds four-year high growth"},"content":{"rendered":"

Activity in the non-oil private sector expanded to its highest level in over four years in <\/strong>December<\/strong>,propelled by a surge in new orders, according to S&P Global\u2019s purchasing manager\u2019s index (pdf)<\/a>. The index climbed to 57.4 in December, up from 57.0 in November, recording the second-best expansion level since mid-2019.<\/p>\n

It was a good end to the year:<\/strong> \u201cThe UAE non-oil economy closed the year with another impressive expansion, confirming the strongest quarterly upturn since Q2 2019 and putting the sector in a favorable position for 2024,\u201d said David Owen, senior economist at S&P Global Market Intelligence. December\u2019s PMI reading signals \u201ca robust improvement in the health of the non-oil private sector, driven by considerable uplifts in output and new orders,\u201d the report said.<\/p>\n

New business orders saw a \u201csharp upturn,\u201d<\/strong> with the sub-index rising to 63.0<\/a> in December, up from 60.5 a month earlier, on the back of strong domestic demand. The jump in new orders was boosted by robust domestic market conditions, despite external market demand slowing down. The sub-index for output posted 63.9 in December for the second consecutive month, bolstered by businesses\u2019 \u201cability to complete work on time, evidenced by only a slight uptick in backlogs.\u201c<\/p>\n

Purchasing activity remained on an upwards trajectory to meet growing demand<\/strong>, although some businesses downsized their stocks to offset the inflationary pressures, causing inventory growth to slow in December to a three-month low. Price pressures also eased \u201cas purchasing costs rose to the least degree in almost a year,\u201d Owen said.<\/p>\n

Business confidence remains high: <\/strong>Optimism for the non-oil sector\u2019s growth over the next 12 months remains high, with the outlook being \u201camong the highest seen since prior to the covid-19 pandemic.\u201d Surveyed businesses said that the optimism is \u201clargely based on robust sales pipelines,\u201d spurring an expansion in employment so that the pace of job creation matches the expected upward activity. <\/p>\n

FROM THE REGION-<\/strong><\/p>\n