UAE PMI Rises to 55.4: Non-Oil Sector Booms Amid Challenges
According to a recent survey by S&P Global the month of December 2024 was the fastest growing month for the non-oil private sector of UAE. This was recorded the highest growth in last nine months. This rapid growth happened after the increased demand and higher business activity.
The Purchasing Managers’ Index (PMI) for December rose to 55.4, in month of November it was 54.2.
Key Highlights:
- New Orders Surge: Demand remained strong, with the new orders subindex climbing to 59.3, reflecting a sharp increase in business.
- Export Challenges: Export demand growth, however, slowed to its lowest in seven months.
- Backlogs Increase: Work backlogs grew significantly, showing businesses were under pressure to meet demand.
David Owen the senior economist at S&P Global said while businesses are facing capacity challenges many are holding back on hiring due to cost constraints. “Boosting resources will be key to meeting demand in the new year,” he said.
Other Observations:
Employment Job creation remained sluggish, marking one of the slowest growth rates in over two-and-a-half years.
Costs Input cost inflation eased, providing relief to businesses, but firms continued to lower prices to stay competitive.
Future Confidence Business optimism for the future stayed muted despite the growth.
In Dubai the PMI rose to 55.5 in December from 53.9 in November, showing the strongest operating conditions there in nine months.
The report highlights the resilience of the UAE’s non-oil economy, even as companies navigate challenges like rising demand, cost pressures, and competition.
