UAE - Mubasher: The seasonally adjusted S&P Global UAE Purchasing Managers' Index (PMI) recorded 54.8 for the second month in a row in March, indicating strong expansion in the UAE's non-oil economy
Production and new businesses at the UAE's non-oil companies continued to rise significantly to remain close to the post-pandemic, according to a press release on Tuesday.
Although the country has witnessed growth in its operating conditions, inflationary pressures have quickened to a 40-month high amid rising commodity prices and fuel due to supply concerns relating to the war in Ukraine.
Meanwhile, companies limited purchasing activity, as input costs increased at the fastest rate since November 2018.
Employment levels at non-oil businesses quickened to a three-month high.
The Economist at S&P Global, David Owen, said: "Given that the recovery in sales has been reportedly helped by price discounts since the second half of 2021, firms now face a difficult decision - whether to pass on higher costs and risk a drop-off in demand, or face a hit to their profit margins."
Owen added: "Moreover, there is the risk that a drop in material and energy availability will add to supply chain problems that first appeared during lockdown measures."
