Business activity in the United Arab Emirates’ non-oil private sector grew at the fastest pace on record in August, helped by sharp gains in output and new business, a purchasing managers’ survey showed on Wednesday.
The HSBC UAE Purchasing Managers’ Index, which measures the performance of the manufacturing and services sectors, climbed to 58.4 points in August from 58.0 in July and the highest since the series began in August 2009.
The seasonally adjusted index remains above the 50-point mark which separates growth from contraction, the survey of 400 private sector firms showed.
“The September PMI data only strengthens our expectation that the economy will continue to perform well over the remainder of the year and into 2015,” said Simon Williams, chief economist for Middle East and North Africa at HSBC.
“Risks may be starting to rise, but for now this is a boom in full flow.”
UAE firms saw output growth accelerate to 62.2 points in August from 61.6 points in July. New orders growth picked up to 66.4 points in August, the highest rate since November 2013.
Growth in new export orders quickened to 64.0 points, the highest level since the series began in 2009. Job creation across the UAE’s non-oil private sector remained at 53.4 points in August.
Output prices rebounded after falling for four months, with the index up at 51.0 points in August from 49.5 in July. The rate of input price inflation quickened to 56.0 points, the highest level since May 2012.