UAE non-oil business activity in May strongest in nearly five years

10th June, 2019 09:20:26 printer

DUBAI: The non-oil private sector economy in the UAE accelerated at the fastest pace since October 2014 on the back of new business orders.

The headline seasonally adjusted Emirates NBD Purchasing Managers’ Index (PMI) for the UAE's non-oil private sector economy rose in May to 59.4 up from 57.6 the prior month. A reading above 50 indicates improvement and growth in business activity. This was the third successive monthly increase in the index, with the latest reading signalling a substantial improvement in business conditions, report agencies.

The record rise in business activity came on the back of stronger market demand, marketing activity and the start of new projects. Companies in the Arab world's second biggest economy largely expect growth to continue over the coming year, with business optimism only fractionally weaker than the previous month’s record high.

“While the rise in the headline PMI indicates faster GDP growth in the UAE’s non-oil private sector, the [economic] environment remains a challenging one for businesses,” Khatija Haque, head of Mena Research at Emirates NBD, said. “The strong rise in both output and new orders last month was on the back of continued price discounting by firms as well as stronger growth in export orders.”