UAE Non-Oil Private Sector Growth Eases In March

(RTTNews) - The non-oil private sector economy in the UAE expanded at a slower pace in March as output and new business growth eased markedly amid the Middle East crisis, survey data from S&P Global showed on Friday.

The purchasing managers' index for the non-oil private sector economy dropped to 52.9 in March from 55.0 in February. Nonetheless, a score above 50 indicates expansion in the sector.

The slowdown in output growth in March was due to the closure of supply routes and softer demand conditions caused by the Middle East war.

The growth in new orders moderated to a 7-month low in March, and international orders rose only at a modest pace, linked to supply-chain shortages, increased freight costs, and broader uncertainty.

Overall vendor performance showed the largest monthly fall on record as the closure of the Strait of Hormuz reportedly led to longer wait times on inputs.

On the price front, input price inflation accelerated to the highest since July 2024 as the war in the Middle East led to strong increases for inputs including logistics, insurance, fuel, energy, steel, technology equipment, and machinery.

Looking ahead, business confidence dropped to its lowest since early 2021 amid concerns about the possible depth and longevity of the war's economic impact.