UAE non-oil enterprise exercise progress picks up in December, PMI reveals

DUBAI (Reuters) – The United Arab Emirates’ non-oil non-public sector expanded at its quickest tempo in 9 months in December, pushed by robust demand and elevated enterprise exercise, a survey confirmed on Monday.

The seasonally adjusted S&P World UAE Buying Managers’ Index (PMI) rose to 55.4 in December from 54.2 in November, remaining effectively above the 50.0 mark that separates progress from contraction, and was the third consecutive month-to-month enhance.

The survey highlighted a pointy rise in new enterprise with the brand new orders subindex rising to 59.3 from 58.0 the earlier month, suggesting strong demand. Nonetheless, export demand progress softened, with that subindex falling to a seven-month low.

Backlogs additionally continued to build up at a fast tempo in December.

“Capability ranges stay below appreciable stress, illustrated by one other marked enhance in backlogs of labor,” mentioned David Owen, senior economist at S&P World Market Intelligence.

“Whereas margin constraints look like holding some companies again from recruiting extra employees…there’s actually a necessity to spice up assets to make sure companies capitalise on demand within the new yr.”

Regardless of the rise in demand, employment progress remained sluggish, with job creation at one of many slowest charges in over two-and-a-half years.

However enter price inflation eased to its lowest degree since March 2024, offering some aid to companies whereas companies continued to low cost costs amid robust competitors.

Nonetheless, firms’ confidence in future enterprise exercise remained muted in December.

For Dubai alone, the headline PMI rose to 55.5 in December from 53.9 in November, indicating the strongest progress in working situations there in 9 months.