ABU DHABI (Reuters) – In April, the growth of the UAE’s non-oil private sector remained stable, with employment experiencing its fastest increase in 11 months as companies aimed to alleviate workloads and foster new business development, according to a survey released on Monday.
The seasonally adjusted S&P Global UAE Purchasing Managers’ Index (PMI) remained at 54.0 in April, consistent with March figures and significantly above the neutral 50.0 mark that indicates growth.
The growth in new orders saw a slight acceleration compared to the previous month, as the respective subindex increased to 56.9 in April from 56.3 in March, influenced in part by the strongest rise in international demand observed in five months.
However, the overall growth of business activity slowed to its lowest level in seven months, as companies encountered difficulties in fulfilling existing projects due to delays in payments.
The employment subindex reported a figure of 51.4, representing the highest reading in nearly a year.
David Owen, a senior economist at S&P Global Market Intelligence, noted that businesses were hiring primarily to decrease backlogs, which, while still rising at a sharp pace, did so at the slowest rate in six months.
“Nonetheless, the overall employment growth was still modest, suggesting that some firms might be finding it challenging to recruit,” Owen stated.
Looking forward, companies expressed optimism, anticipating that a robust sales pipeline and resilient market conditions would bolster future activities, with confidence reaching its peak in 2025 so far.
In contrast, Dubai’s non-oil private sector experienced a further slowdown in April, as the overall PMI dropped to 52.9 from 53.2 in March. Companies acknowledged the slowest growth rate in new business since October, with diminished confidence regarding future activity levels.
(Reporting by Reuters; Editing by Hugh Lawson)