A study showed that growth in non-oil business activity in the Emirates fell to the lowest level in eight months in April, with sales and production of companies affected by the effects of the unprecedented floods and rains that hit the country about two weeks ago. .
The Standard & Poor’s Global Purchasing Managers’ Index reading in the UAE, adjusted for seasonal factors, fell to 55.3 points in April, the lowest reading since last August, but remained above the 50 point level which separates activity from decline.
Although the manufacturing sub-index rose slightly to 63.2 points in April from 62.7 the previous month, supported by strong domestic economic conditions and promotional initiatives, heavy rains had worsened the pace of growth in new orders .
New sales increased at the slowest rate since February 2023, and the new orders sub-index reached 56 points in April, down from a reading of 61.5 points the previous month, after heavy rain disrupted activity and overshadowed sell
The number of orders jumped significantly due to bad weather, which particularly affected Dubai, the main business and tourism center of the country.
Tim Moore, director of economics at Standard & Poor’s Global Market Intelligence, said: “Companies operating in Dubai saw a particularly sharp decline in sales momentum after climate disruptions hurt corporate and consumer spending. “
“Non-energy companies remain optimistic about growth prospects next year. Many cited the strong sales lines and quick recovery from the impact of heavy rain,” said Moore.
Business remained confident about production over the coming year, but the level of optimism fell to its lowest level since January.
The non-oil sector represents about 74 percent of the UAE’s gross domestic product, which is working to attract foreign investment and accelerate its plans to reduce the economy’s dependence on oil and gas.
2024-05-03 05:57:09
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