Growth in the UAE non-oil private sector picked up pace in September as new client onboarding, competitive pricing and sturdy underlying economic conditions boosted demand, a business survey showed on Wednesday.
The seasonally adjusted S&P Global UAE Purchasing Managers' Index (PMI) rose to 56.7 in September, up from 55.0 in August. The 1.7-point jump in the headline index was mainly driven by the New Orders sub-index, which climbed over seven points to its highest level since June 2019.
"The UAE PMI recorded its first uptick for three months in September, driven by a much sharper rise in new work intakes than one month ago. In fact, the upturn in new work was the fastest since June 2019, supported by new client wins both domestically and in export markets," said David Owen, senior economist at S&P Global Market Intelligence.
New orders from foreign clients rose at a marked pace that was the sharpest seen in just over four years.
Output rose more quickly, and confidence jumped, while stronger input buying growth drove cost pressures higher. However, growth in both inventories and employment softened. Stocks rose only slightly as firms faced a greater drawdown to meet new orders, leading to a stronger increase in purchasing activity.
Meanwhile, inflationary pressures and stronger demand for input drove cost of raw materials higher. "Consequently, purchasing (and overall) costs rose solidly and at the quickest pace for more than a year," the report said.
(Writing by Brinda Darasha; editing by Seban Scaria)