Non-oil activities in the UAE experienced consistent growth in November, an economic tracker showed. This growth was primarily propelled by a significant increase in new business inflows and the swift replenishment and expansion of stocks, driven by robust demand conditions.
In the most recent report from S&P Global Purchasing Managers’ Index (PMI), it was disclosed that the PMI for the UAE reached 57 in November, slightly lower than the October figure of 57.7.
Despite this modest decrease, the PMI of the Emirates remained comfortably above the neutral threshold of 50, signifying a sustained enhancement in business conditions.
According to David Owen, senior economist at S&P Global Market Intelligence, the robust growth in demand within the non-oil economy of the UAE prompted a notable surge in input purchases during November. This proactive approach by businesses aimed to position themselves advantageously to capitalize on growth prospects.
Owen further highlighted that the accelerated rate of purchasing, the swiftest since July 2019, facilitated the most substantial accumulation of stocks in nearly six years. This development proved beneficial to both local enterprises and their trade partners, he said.
The report demonstrated that non-oil private firms experienced a rapid improvement in operating conditions during the middle of the final quarter. This progress was driven by robust trends observed in new business, output, and inventories.
S&P Global further noted that the sustained growth in new business prompted an increase in purchasing activity in November.
The paper also indicated that while overall cost inflation remained stronger compared to recent trends, selling prices remained largely stable.
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