The UAE non-oil private sector increased at the softest pace in three months in April, but remained robust amid strong growth in output and new orders, survey results from S&P Global showed on Monday.
The Purchasing Managers' Index fell to 54.6 in April from 54.8 in March. A score above 50 indicates expansion.
Output increased sharply in April. New orders growth was strong, though the slowest in three months. Foreign new business rose at the fastest pace since January last year.
Input prices rose in April due to Russia-Ukraine war and the average selling prices increased for the first time in nine months.
"The increase will spur greater concern of an inflationary-led dip in demand, particularly as the positive efforts from the pandemic recovery and Expo 2020 fade," David Owen, economist at S&P Global, said.
Purchasing level increased at the second-fastest pace since August 2019. The number of employed decreased modestly in April and led to a rise in backlogs of work.
Business confidence improved in April with strong growth in sales, which led to an increase in output at the fastest rate in the year.
However, rising inflationary pressures, supply concerns and price-led competition meant that the degree of confidence in future activity slipped to the weakest since last December.
