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  • 06-06-23

    UAE's Non-Oil Private Sector Growth Outlook Remains Positive in May

    (MENAFN) Despite a slight dip in the seasonally adjusted S&P Global Purchasing Managers' Index (PMI) from 56.6 in April to 55.5 in May, the United Arab Emirates (UAE) continues to show a positive growth outlook for its non-oil private sector. The PMI serves as an indicator of business activity, with readings above 50 indicating growth and those below 50 suggesting contraction.

    The S&P Global report highlighted that although the PMI figure decreased slightly, the UAE's non-oil private sector still demonstrated improved operating conditions, leading to heightened business confidence levels not seen since October 2021. This positive sentiment reflects the belief that the sector is performing well, despite the minor decrease in the index.

    David Owen, Senior Economist at S&P Global Market Intelligence, commented on the report, stating that the UAE PMI indicated a strong performance in the non-oil sector during the second quarter of 2023. While the headline reading of 55.5 represents a slight decline from April's six-month high, it still points to a robust improvement in business conditions. This improvement is primarily driven by significant upturns in activity levels and new work opportunities.

    Moreover, the Future Output Index, which measures firms' expectations for future performance, reached its highest level since October 2021. This reflects the optimism among businesses that the strong demand momentum will persist, contributing to continued growth in the non-oil private sector of the UAE.

    Overall, despite the small drop in the PMI, the UAE's non-oil private sector remains on a positive growth trajectory. The report suggests that businesses are confident about the future and expect sustained demand, which will drive further improvements in business conditions. As the UAE continues to diversify its economy and reduce reliance on oil, the resilience and positive outlook of the non-oil private sector play a crucial role in achieving long-term economic sustainability and prosperity.

    MENAFN06062023000045014228ID1106394108

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