The index still points to an improving performance of the non-oil private sector, while remaining above the neutral level at 50 points, which shows the success of the UAE’s plans to increase the contribution of the non-oil private sector to GDP within the economic diversification plans.
David Owen, chief economist at S&P Global, said the index’s rise for the third consecutive month indicates “a stronger rate of expansion for the non-oil economy, driven by rapidly increasing new orders and easing inflationary pressures”.
The report also showed that the New Orders Index rose in April to its highest level since November 2021, supported by improving demand in the local market as businesses saw no change in sales. abroad since the end of the first quarter.
Companies sought to bid and cut prices to support sales, with the pace of price cuts accelerating to its highest level in just over two and a half years, supported by a slowdown in input costs.
Input costs rose slightly in April, at the slowest pace in three months, while production levels rose at their fastest pace in six months.
The report also showed continued optimism among UAE businesses about future prospects, at the highest rate in 7 months, supported by expectations of continued strong demand.
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