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Aerial skyline of downtown Dubai filled with modern skyscrapers in the United Arab Emirates rising above the main city highway aerial view at sunrise. Image used for illustrative purpose. Getty Images
Growth in the UAE's non-oil private sector head steady through February as increasing levels of new business led to higher output, but firms felt the pinch of competition, a survey showed on Wednesday.
The seasonally adjusted S&P Global UAE Purchasing Managers' Index remained unchanged from January at 55.0, a shade higher than its long-run average of 54.4.
Around 29% of the firms surveyed reported higher activity than in January, compared to 5% where activity had fallen.
"A PMI reading of 55.0 suggests that growth has remained relatively steady since its recent high at the end of last year,” said David Owen, Senior Economist at S&P Global Market Intelligence.
"However, the sector is not without its challenges, as highlighted by a limited level of confidence in the year ahead outlook. Firms continue to feel the pressure of intense competition, which has capped price increases,” he added.
Job creation also remained limited in February as most firms kept employment levels unchanged. Cost pressures too rose for the first time in seven months.
Looking ahead, firms were most concerned about international competition and capacity issues.
Dubai PMI
The Dubai PMI fell to a three-month low of 54.3 in February, down from 55.3 in January. Nonetheless, firms reported robust expansions in new orders and output.
Business expectations improved to a three-month high but remained relatively subdued. As a result, most firms kept their staffing levels unchanged from January, although inventory growth was supported by rising input purchasing.
(Writing by Brinda Darasha; editing by Seban Scaria)
