Growth in UAE non-oil business activity accelerates in December, PMI shows according to Reuters
DUBAI (Reuters) – The United Arab Emirates’ non-oil private sector expanded at its fastest pace in nine months in December, boosted by strong demand and increased business activity, a survey showed on Monday.
The seasonally adjusted S&P Global UAE Purchasing Managers’ Index (PMI) rose to 55.4 in December from 54.2 in November, holding well above the 50.0 mark that separates growth from contraction, and was the third consecutive monthly increase.
The survey highlighted a sharp rise in new business with the new orders sub-index rising to 59.3 from 58.0 the previous month, indicating strong demand. However, growth in export demand moderated, with the sub-index falling to its lowest level in seven months.
Backlogs also continued to pile up at a rapid pace in December.
“Capacity levels remain under significant stress, illustrated by another significant increase in the backlog,” said David Owen, senior economist at S&P Global Market Intelligence.
“While margin constraints appear to be holding some companies back from hiring more staff…there is certainly a need to increase resources to ensure companies capitalize on demand in the new year.”
Despite the increase in demand, employment growth remains sluggish, with job openings at one of the slowest rates in more than two and a half years.
But input cost inflation eased to its lowest level since March 2024, providing some relief to firms as firms continued to cut prices amid strong competition.
However, companies’ confidence in future business activities remained muted in December.
For Dubai alone, the headline PMI rose to 55.5 in December from 53.9 in November, indicating the strongest growth in working conditions there in nine months.
