UAE - Mubasher: The UAE's non-oil private sector economy has grown at the fastest pace since July 2019 in March, as shown by the adjusted IHS Markit UAE Purchasing Managers' Index (PMI).
The UAE PMI increased by two points to 52.6 in March 2021 from 50.6 in February, recording a 20-month high in output growth, according to a press release on Monday.
The growth in the UAE's non-oil private business sector is attributed to a renewed rise in new business inflows and a sharp recovery in the construction sector.
Meanwhile, the coronavirus (COVID-19) vaccine rollout has boosted business confidence and led to an increase in demands after the UAE's non-oil business sector had witnessed a subdued trend for sales in February.
However, the sector saw supply-side constraints amid increased length of delivery time and deterioration in input availability, resulting in a marked rise in overall cost pressures.
In addition, the employment rates recorded a slight decline across the country's non-oil sector in March, as some companies have sought to offset rising cost pressures.
The Economist at IHS Markit, David Owen, commented: "There is growing concern surrounding supply-side factors, however, with global delivery delays having built up during the first quarter of the year. UAE businesses are now starting to see the effects, as input price inflation ticked higher amid rising raw material prices and shipping fees."
