Growth in #UAE’s non-oil business sector slows in September - PMI

Growth in UAE’s non-oil business sector slows in September - PMI

Growth in UAE’s non-oil business activities witnessed the weakest expansion in three years at the end of September, with reducing new orders and less employment opportunities impacting the overall output.

The seasonally adjusted S&P Global UAE Purchasing Managers' Index (PMI) dipped to 53.8 in September from 54.2 in August.

"The UAE PMI continued to show a loss of momentum in the non-oil private sector, with growth having softened considerably since the start of the year,” said David Owen, senior economist at S&P Global Market Intelligence.

With new order growth softening, businesses reported fewer hires in September, driving the mildest rise in total employment since the end of 2022.

Though rising demand had boosted output, business activity rose at the slowest pace since September 2021. New business levels received by non-oil firms rose at a sharp pace during the latest survey period, helped by a solid increase in export sales and reports of strong local market conditions.

Business owners cited that competition hampered sales and tougher market conditions prompted businesses to have a cautious outlook.

Input costs were also up sharply in September, with businesses noting high price pressures from sources including transportation, machinery, technology, petrol and labour. However, the rate of overall cost inflation eased to the weakest since April.

Dubai PMI

The Dubai PMI signalled a robust expansion in business conditions across the non-oil private sector in September.

Overall activity levels rose at the fastest pace in four months, despite a slower upturn in new business volumes.

The expansion led non-oil businesses to increase staffing and inventories to greater degrees than in August.