The UAE non-oil economy strengthened in September on a boost from new orders

Business activity in the UAE’s non-oil private sector expanded strongly in September as the addition of new customers, competitive pricing and firmer underlying economic conditions boosted demand.

The seasonally adjusted S&P Global Purchasing Managers’ Index rose to 56.7 in September from 55 in August, above the midpoint of 50 that separates growth from contraction.

The latest reading indicated a „strong and rapid expansion” in the non-oil private sector.

The index posted its first increase in three months in September, driven by a „much sharper rise in new job intakes than a month ago.”

„The uptick in new employment since June 2019 was the fastest, supported by new customers in both domestic and export markets,” said David Owen, senior economist at S&P Global Market Intelligence.

„Activity growth, likewise, accelerated, albeit slightly, but was weaker than the recent rise in June. This is the first time since May 2021 that the output indicator has lagged behind new orders, suggesting that businesses do not feel the need to ramp up activity significantly.

The new orders sub-index, which rose more than seven points to its highest level since June 2019, indicated a significant rise in new order arrivals in September, with about 38 percent of survey participants citing a monthly rise, compared to 8 percent who saw a decline, the survey found.

„Where new orders grew, many businesses noted they had more customers, some, in turn, linked to lower prices amid stronger economic conditions and competitive pressures,” it said.

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Updated: October 04, 2023, 5:04 AM

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