UAE private sector activity hits highest since September 2015

Non-oil private sector activity in the UAE picked up last month as new orders rose and prices increased for the first time in more than a year, according to the latest survey of economic sentiment in the country.
The Purchasing Managers’ Index survey, sponsored by Emirates NBD and produced by IHS Markit, for February hit a 17-month high of 56, up from 55.3 in January. A reading above 50 indicates the economy is expanding.
"The rise in the UAE PMI to the highest level since September 2015 suggests that demand has strengthened, both domestically and abroad. Higher oil prices have likely contributed to improved sentiment and business activity over the last few months," said Khatija Haque, the head of Mena research at Emirates NBD.
Average selling prices rose for the first time in almost one-and-a-half years as firms passed on to clients part of their additional costs to protect margins.
New business increased last month at the fastest rate since September 2015, and higher export orders meant that companies raised output further.
This in turn meant extra staff were hired, but the pace of job creation softened to the weakest in four months, according to the index.
"UAE non-oil private sector companies expect the favourable economic scenario to be sustained over the coming 12 months, with one in five companies forecasting output growth in the year ahead. In fact, the level of positive sentiment was at a five-month high in February. Optimism reportedly reflected aggressive marketing campaigns, strong demand and new projects in the pipeline," Emirates NBD said.

Source: The National