UAE Non-Oil Growth Steady in October as PMI Hits 53.8: S&P Global
The UAE's non-oil economy maintained steady growth in October with a Purchasing Managers' Index at 53.8, driven by strong new orders and robust business activity.
Riyadh: The United Arab Emirates (UAE)'s non-oil economy maintained steady growth in October, as evidenced by the Purchasing Managers' Index (PMI) reaching 53.8, a slight dip from September's reading of 54.2 but remaining above the mid-year trend.
This report was compiled by S&P Global Market Intelligence.
The PMI figures indicate that despite a moderation in growth pace, the non-oil private sector experienced a healthy improvement in operating conditions, primarily due to an increase in new orders and overall business activity.
The steady PMI reading aligns with broader trends across the Gulf Cooperation Council (GCC), where countries are actively working on economic diversification efforts to reduce their reliance on crude revenues.
In October, Saudi Arabia reported the highest PMI within the region at 60.2, followed by readings of 52.8 and 50.6 for Kuwait and Qatar respectively.
David Owen, a senior economist at S&P Global Market Intelligence, noted that the UAE's PMI continued to signal steady growth in the non-oil private sector as year-end approaches.
He also mentioned the recovery of new business growth since its low in August, which supports increases in output and purchasing activity.
The report highlighted significant growth in non-oil private sector activity in October, with companies attributing improved sales and new project initiations as key drivers.
Additionally, firms benefited from a slower rise in input costs for the second consecutive month, maintaining largely stable output prices.
However, optimism about future business conditions weakened to a three-year low, leading to a softer pace of hiring.
Employment remained a weak point, with October data indicating the slowest increase in job numbers in seven months.
This can be partly attributed to a relatively subdued level of business confidence.
The survey also revealed that companies have been the least optimistic in nearly three years, despite most still anticipating favorable economic conditions and sustained order inflows.
In Dubai, business activity strengthened further, with the emirate's PMI reaching a nine-month high of 54.5, up from 54.2 in September.
New orders surged for non-oil companies, leading to a sharper increase in output.
Employment rose for the seventh consecutive month albeit at a modest rate.
This report was compiled by S&P Global Market Intelligence.
The PMI figures indicate that despite a moderation in growth pace, the non-oil private sector experienced a healthy improvement in operating conditions, primarily due to an increase in new orders and overall business activity.
The steady PMI reading aligns with broader trends across the Gulf Cooperation Council (GCC), where countries are actively working on economic diversification efforts to reduce their reliance on crude revenues.
In October, Saudi Arabia reported the highest PMI within the region at 60.2, followed by readings of 52.8 and 50.6 for Kuwait and Qatar respectively.
David Owen, a senior economist at S&P Global Market Intelligence, noted that the UAE's PMI continued to signal steady growth in the non-oil private sector as year-end approaches.
He also mentioned the recovery of new business growth since its low in August, which supports increases in output and purchasing activity.
The report highlighted significant growth in non-oil private sector activity in October, with companies attributing improved sales and new project initiations as key drivers.
Additionally, firms benefited from a slower rise in input costs for the second consecutive month, maintaining largely stable output prices.
However, optimism about future business conditions weakened to a three-year low, leading to a softer pace of hiring.
Employment remained a weak point, with October data indicating the slowest increase in job numbers in seven months.
This can be partly attributed to a relatively subdued level of business confidence.
The survey also revealed that companies have been the least optimistic in nearly three years, despite most still anticipating favorable economic conditions and sustained order inflows.
In Dubai, business activity strengthened further, with the emirate's PMI reaching a nine-month high of 54.5, up from 54.2 in September.
New orders surged for non-oil companies, leading to a sharper increase in output.
Employment rose for the seventh consecutive month albeit at a modest rate.
