Surging demand propels UAE business growth to 5-year high in February

Surging demand propels UAE business growth to 5-year high in February

UAE – Mubasher: Business activity in the UAE surged at its quickest pace in nearly five years in February 2024 amidst robust growth across the non-oil sector, with businesses experiencing strengthened conditions driven by significant increases in activity and sales.

The seasonally adjusted S&P Global UAE Purchasing Managers' Index (PMI) climbed from 56.6 in January to 57.1 in February, indicating a sharp upturn in overall operating conditions, according to a report by S&P Global.

This trend, which commenced in the final quarter of the previous year, marked the strongest performance since mid-2019, primarily driven by a sharp expansion in non-oil private sector activity.

S&P Global’s report highlighted a notable uptick in new orders as market demand and client activity maintained upward trajectories, resulting in the sharpest rise in output levels since mid-2019.

Despite competitive pressures persisting, businesses managed to sustain growth momentum. However, disruptions to shipping lines in the Red Sea began impacting local supply chains, leading to a moderate improvement in vendor performance over seven months and a notable increase in backlogged work, the sharpest in nearly four years.

Furthermore, input prices rose solidly for the second consecutive month. Nevertheless, firms, in a bid to outpace competitors, offered the most significant price cuts since