Growth in the UAE’s non-oil private sector moderated in March, a survey showed on Friday, highlighting a softening in demand momentum in the Gulf region’s most diversified economy. The seasonally adjusted S&P Global Purchasing Managers’ Index (PMI) slipped to 54.0 last month from 55.0 in February, marking the slowest pace of growth since September. New order growth slowed for the third consecutive month, with the new orders index falling to 56.3 in March from 57.3 the previous month, the weakest reading since October.
“Some firms could be encountering challenges in meeting their sales targets,” said David Owen, senior economist at S&P Global Market Intelligence. Despite the slowdown, businesses ramped up input purchases at the fastest rate since July 2019, aiming to clear backlogs of work. However, employment growth hit its weakest level in nearly three years as firms struggled to find suitable candidates. Input prices saw a moderate rise, with some firms noting higher material costs while others benefited from lower transport prices.
Read more: UAE’s non-oil sector sees steady growth in February as output, new orders rise: PMI
Dubai’s non-oil private sector also experienced a slowdown in March, with the headline PMI falling to a five-month low of 53.2 from 54.3 in February. New orders rose sharply but at a slower rate, prompting a rare reduction in employment. But UAE firms remain optimistic about future growth, supported by strong pipelines and national infrastructure development.
