UAE business activities are at a 38-month high

UAE business activities are at a 38-month high

Purchasing growth reached a seven-year high as lower fuel prices helped ease the burden on companies' expenses and encouraged price drops for other items, the latest PMI data showed

The UAE, the Arab world’s second-largest economy, expanded 3.8 per cent in 2021, and is expected to grow 5.4 per cent and 4.2 per cent in 2022 and 2023, respectively. — File photo

Published: Mon 5 Sep 2022, 6:22 PM Last updated: Mon 5 Sep 2022, 6:23 PM

Businesses in the UAE recorded a strong upswing in activities during August, largely driven by lower fuel prices and growing demand irrespective of rising concerns about a looming global recession, the latest data shows.

Notwithstanding the normal summer slump, the UAE PMI (purchasing managers’ index) continued to trend higher in August, reaching a 38-month high of 56.7 to signal a vibrant upturn in business conditions in the non-oil sector.

Purchasing growth reached a seven-year high as lower fuel prices helped ease the burden on companies' expenses and encouraged price drops for other items, the latest PMI data showed. Although businesses reported a strengthening of demand conditions and a boost to new orders from lower selling charges, confidence for the coming year was down to a 17-month low in