emirates7 - Business activity in the UAE's non-oil private sector rebounded in August, following a dip in July to its lowest level in nearly three years, as growth regained momentum with companies securing new work orders.

The seasonally adjusted S&P Global purchasing managers’ index (PMI) for the Arab world's second-largest economy rose to 54.2 in August, up from 53.7 in July, which had marked a 34-month low. This improvement was driven by the fastest increase in new orders since March. Additionally, pressure on operating capacity eased as supply chains continued to recover and companies increased their input purchases.

David Owen, senior economist at S&P Global Market Intelligence, commented that the UAE PMI showed a solid expansion in non-oil business conditions in August, though it remained below the levels seen earlier in the year, with fewer companies reporting a rise in activity.

"Businesses are confident that output growth will be maintained in the coming year, particularly as sales pipelines remain robust and firms have substantial outstanding work to complete. The easing of capacity constraints should also support further business activity," Owen said.

The UAE's economic growth in 2023 has been stronger than previously estimated, largely driven by the expansion of the non-oil sector.