 |
| UAE Economy |
A survey released on Sunday showed that the UAE's non-oil private sector saw its strongest expansion in seven months in September, driven by a sharp increase in new business.
The seasonally adjusted S&P Global UAE Purchasing Managers' Index (PMI) rose to 54.2 in September from 53.3 in August, indicating a strong improvement in business conditions. New orders grew at the fastest pace since February, recovering from a four-year low in August, as domestic demand strengthened. The new orders sub-index jumped to 57.2 in September from 53.1 in August.
"More than 30 % of surveyed companies reported an increase in new orders during the month," said David Owen, senior economist at S&P Global Market Intelligence. "This highlights the positive momentum in the domestic market." However, Owen said that competitive pressures remain a major issue, while order backlogs also rose, albeit at a slower pace.
Employment rates rose at the fastest pace since May, but firms remained cautious about inventory levels, which fell for the third consecutive month. Despite rising input costs, output price inflation eased, attributed to competition concerns. In Dubai, the headline Purchasing Managers' Index (PMI) rose to 54.2 in September from 53.6 in August, with new business activity rising sharply, leading to strong growth in output and employment.
Non-oil GDP in the UAE is expected to grow by 4.5 percent in 2025 and 4.8 percent in 2026, likely benefiting from the spillover effects of increased oil and gas sector growth, including increased investment, government spending, and economic confidence. The September PMI survey indicated strong optimism about future output, with around 15 percent of respondents expecting activity to increase over the next year.
No comments:
Post a Comment