(MENAFN - Khaleej Times) Pace of expansion quickens to highest since aug ?09; pmi jumps to 57
The uae’s non-oil private sector companies reported a steep rise in output during march with the pace of expansion accelerating to the highest since data collection began in august 2009 a purchasing managers’ survey showed on thursday.
A survey of 400 uae private sector firms showed new order growth picking up as employment levels rose further and buying activity increased sharply. — kt file photo
The hsbc uae purchasing managers’ index which measures the performance of the manufacturing and services sectors rose to 57.7 points in march from 57.3 in the previous month.
A survey of 400 private sector firms showed new order growth picking up falling just short of november’s record high. employment levels rose further and buying activity increased sharply.
Simon williams chief economist for the middle east and north africa at hsbc said the uae economy is in its best condition in seven years.
“output is building momentum new orders are firm and inflation is only beginning to pick up.”
Firms saw output growth rising to 60.3 points in march which was the strongest rate since the series started in august 2009 from february’s 59.7. new orders increased to 66.2 a four-month high. new export orders rose sharply despite the rate of expansion easing from february’s record-high of 60.1 which was the highest level in the series’ history. employment creation across the uae’s non-oil private sector eased marginally to 52.8 points in march. output price growth was unchanged while input price growth rebounded to 54.9 from a six-month low of 54.1 points in february.
Consumer price inflation in the uae one of the world’s top oil exporters edged up to 1.8 per cent on an annual basis in february the highest rate since october 2010. while purchase prices rose at a marginally weaker rate staff cost inflation accelerated to a three-month high.
“higher prices for some raw materials was the main driver for purchase price inflation while increased living costs resulted in the latest rise in average salaries.”
Order intakes rose markedly with 46 per cent of the survey panel reporting an increase. the rate of growth in new work was the second sharpest in the series history. “anecdotal evidence suggested that increased new business was driven by improved market conditions increased construction work and greater sales team efforts.”