UAE Non-Oil Sector Holds Steady Growth in May
The Purchasing Managers’ Index for the UAE’s non-oil private sector remained steady at 55.4 in May, indicating continued growth, according to an economy tracker.
Record Increase in Outstanding Business Levels
Non-oil companies in the Emirates saw a record increase in outstanding business levels in May, driven by robust sales pipelines and the lingering impact of the April flooding crisis.
Relentless Pressure on Business Capacity
Senior economist David Owen noted that UAE non-oil companies faced relentless pressure on business capacity in May, with backlogs of work reaching unprecedented levels.
Challenges Amidst Growth
Despite the challenges, the PMI remained above 50, signaling growth in the non-oil sector. However, input costs rose sharply, leading to increased price pressures in May.
Focus on Recovery
As the sector works towards recovery from the crisis, firms are expected to focus on rebuilding output levels, hiring workers, and boosting inventories. With strong demand, robust growth is anticipated once capacity is restored.