Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
The UAE’s non-oil private sector recorded another solid improvement in business conditions in October, with the seasonally adjusted S&P Global UAE Purchasing Managers’ Index (PMI) registering 53.8, slightly lower than September’s 54.2 but still well above the neutral 50 mark, indicating continued expansion.
The PMI, a key indicator tracking business activity in the manufacturing and services sectors, showed that the pace of growth remained above the mid-year trend, supported by a strong rise in new orders. Surveyed firms cited improved sales and new project initiations as the main drivers of October’s expansion.
“The pace of new business growth has recovered well since its low in August, supporting increases in output and purchasing activity,” said David Owen, Senior Economist at S&P Global Market Intelligence. “The UAE PMI continued to signal a steady growth rate in the non-oil private sector as we draw closer to the end of the year.”
October marked the third consecutive month in which overall activity outperformed the survey’s historical trend. The report noted a second month of demand recovery, following the weakest upturn in over four years recorded in August, as companies benefited from stronger economic conditions and enhanced marketing efforts that attracted more clients.
Firms also recorded the largest rise in input buying since June, helping stabilise inventory levels after three months of decline. Input costs increased only modestly, with inflation easing for the second month in a row. “While some firms noted higher supplier prices, increased transport costs and wage rises, only 4% reported cost increases,” the report said.
Firms adopted a cautious approach to hiring with job numbers growing at the slowest pace since March, the report said.
Dubai PMI
Dubai’s non-oil private sector saw accelerated growth at the start of the fourth quarter, with its PMI climbing to 54.5 in October — the highest level since January.
“Non-oil businesses in Dubai registered a stronger upturn in activity as the fourth quarter commenced, leading the PMI to rise to its highest level since January,” the S&P Global report said. The improvement reflected greater inflows of new orders and a sharper rise in output levels.
Employment in Dubai increased for the seventh consecutive month. Meanwhile, input prices rose at the fastest rate in six months, driven by higher raw material, technology, and wage costs, leading to a modest uptick in selling prices after a brief decline in September.
