UAE business activity growth in the United Arab Emirates jumped slightly to a four-month high in March, managing to outperform many private sectors in other emerging markets. Firms reported output growth rise to 60.3 points, the highest rate since August 2009, a HSBC purchasing managers’ survey shows.
UAE Purchasing Managers’ Index measures the performance of the non-oil manufacturing and services sectors. Reflecting a survey of 400 private sector firms across the country, the index rose to 57.7 points in March from 57.3 in the previous month. Any measurement above 50 is an indication of growth in business activity.
One of the highlights in the report is the continuous rise in output – in March, companies saw a rise from the February’s 59.7 reaching 60.3 points, which is the strongest rate since the launch of the survey in August 2009. New orders also rose to 66.2, a four-month high. According to economists, the private sector activity was maintained by the increasing number of tourists. For Simon Williams, Chief Economist for Middle East and North Africa at HSBC, the national economy is “in its best condition in seven years”.
In March, the growth in new export orders decreased to 57.9 points from the previous month, which had the strongest rate since the beginning of the series – 60.1. Creation of new jobs eased to 52.8 points, the growth in output price remained at the same level, and input price growth jumped to 54.9 points from 54.1 in February. The report also says that consumer prices inflation increased up to 1.8 percent in February, compared to the same period the previous year, the highest rise since October 2010.
Compared to business activity in other emerging economies, the UAE is showing some of the best performances. Russia, India, China, Brazil and South Africa are reporting scores lower than 52 in March, while the manufacturing sector in China fell to 48 points, an eight-month low.
