A survey published today, Friday, showed a slowdown in the growth of non-oil private sector activity in the UAE during the month of March, recording its slowest pace in nearly four years. This slowdown is due to the impact of the ongoing conflicts in the Middle East region, which led to a decline in demand and disruption of supply chains.
The Standard & Poor’s Global UAE Purchasing Managers’ Index, seasonally adjusted, fell to 52.9 points in March, after it was 55.0 points in February. However, the index maintained its position within the growth zone.
Both production growth and new orders witnessed a noticeable decline, with the production sub-index recording 54.9 points, the slowest growth rate since June 2021, after recording 61.8 points in February, according to Reuters.
The new orders sub-index also fell to 54.5 points, after it was 59.5 points in February, recording its weakest growth since August of last year.
In this context, David Owen, an expert at Standard & Poor’s Global Market Intelligence, said: “Unofficial reports indicate that sectors such as tourism, retail, and logistics were the most affected, while other sectors, such as technology and construction, saw a less severe but still noticeable impact.”
He added: “Although the war negatively affected the non-oil private sector in general in March, the order books of many companies remained strong and even expanded production.”
Supplier delivery times also witnessed a lengthening for the first time since September 2021, following the closure of the Strait of Hormuz. At the same time, the backlog has increased at the fastest pace this year.
Business expectations for the next 12 months fell to their lowest level in just over five years.
In Dubai, the commercial and tourism center in the UAE, the main Purchasing Managers’ Index fell to 53.2 points, down from 54.6 points, recording the weakest growth in non-oil business conditions in nine months. (Arabic)
