UAE economy records strong expansion in March

UAE economy records strong expansion in March

Output and new business continued to increase sharply, although firms restricted purchasing activity as input costs picked up at the fastest rate since November 2018

The rate of new business growth at UAE non-oil firms was unchanged since February and remained close to the post-pandemic high seen in November 2021. — File photo

By Staff Report Published: Tue 5 Apr 2022, 4:33 PM

The UAE’s non-oil economy recorded strong expansion in March, underpinned by sustained strong output growth.

However, the month was marred by intensifying inflationary pressures linked to rising commodity prices, according to S&P Global’s PMI survey data.

“Output and new business continued to increase sharply, although firms restricted purchasing activity as input costs picked up at the fastest rate since November 2018,” said the survey report.

The seasonally adjusted IHS Markit UAE Purchasing Managers’ Index posted 54.8 for the second month running in March. The reading was well above the 50.0 neutral mark to indicate a further sharp improvement in operating conditions.

The rate of new business growth at UAE non-oil firms was unchanged since February and remained close to the post-pandemic high seen in November 2021. Where new orders rose, panellists often linked this to a further uplift in client demand as markets recovered