UAE: Non-oil private-sector conditions improve markedly in April
The S&P Global Purchasing Managers’ Index (PMI) climbed to a six-month high of 56.6 in April, up from March’s 55.9. As such, the index moved further above the 50.0 no-change threshold, signaling a stronger improvement in non-oil private sector operating conditions from the prior month.
April’s upturn was chiefly due to the new orders index rising to its highest level since November 2021. Improving domestic demand and better market conditions drove the increase. Consequently, output levels expanded at the strongest rate in six months. Accordingly, additional staff was onboarded, although the job creation rate slowed from March’s multi-year high. As a result, outstanding work was reduced.
Turning to prices, pressures were relatively mild: Input costs rose at the weakest rate in three months. This allowed companies to reduce selling prices at the quickest pace in over two-and-a-half years. The practice was successful in attracting customers, increasing new order volumes in turn. Lastly, firms’ sentiment regarding activity in the coming year rose to a seven-month high in April, boosted by improving economic and demand conditions.