Strong momentum in #Dubai's non-oil sector lifts PMI to 10-month high in June

Strong momentum in Dubai's non-oil sector lifts PMI to 10-month high in June

Dubai's non-oil private sector gathered strong momentum in June with increases in new businesses and output driving up employment and inventory levels, a survey showed on Tuesday.

The seasonally adjusted S&P Global UAE Purchasing Managers' Index (PMI) rose to 56.9 in June after slipping to 55.3 the previous month, signalling the strongest overall improvement in operating conditions in the sector since August 2022.

"Moreover, the headline index remained well above its long-run trend level of 54.6 and the month-on-month rise at 1.6 points was the largest recorded since October 2021," the report said.

The expansion in new business was underpinned by strong rise in demand, which rose for the 21st successive month, and at the fastest rate since August 2022.

"Dubai's non-oil private sector economy enjoyed accelerating growth of new business in June, supporting another marked rise in overall output. All three of the key sectors monitored - construction, wholesale & retail and travel & tourism - registered faster increases in new work mid-way through the year," said Trevor Balchin, Economics Director at S&P Global Market Intelligence.

Hiring continued for the 14th successive month in June, the longest run of continuous job creation in over six years. This was seen to be particularly robust in the construction sector.

Supply chains improved and firms continued to build inventory. Companies were also able to continue offering lower prices to customers despite a slightly faster rate of input price inflation during the month.

Meanwhile, the 12-month outlook for activity eased slightly since May but was still the second strongest since October 2021. Of the three key sectors monitored, construction was the most optimistic, followed closely by wholesale & retail.