ABU DHABI (Reuters) -The United Arab Emirates’ non-oil private sector experienced its strongest expansion in seven months in September, driven by a sharp rise in new business, a survey showed on Friday.
The seasonally adjusted S&P Global UAE Purchasing Managers’ Index (PMI) increased to 54.2 in September from 53.3 in August, indicating a solid 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 sub index for new orders jumped to 57.2 in September from a reading of 53.1 in August.
“Over 30% of surveyed firms reported an increase in new order intakes during the month,” said David Owen, senior economist at S&P Global Market Intelligence, highlighting positive momentum in the domestic market.
Owen said however that competitive pressures remained a key issue, while backlogs also rose, albeit at a slower pace.
Employment levels advanced at the fastest rate since May, although firms remained cautious with inventory levels, which declined for the third consecutive month.
Despite increased input costs, output price inflation softened, attributed to competition concerns.
In Dubai, the Gulf region’s business and tourism hub, the headline PMI rose to 54.2 in September from 53.6 in August, with new work levels sharply up, leading to robust output and employment growth.
The UAE’s non-hydrocarbon GDP is expected to grow by 4.5% in 2025 and 4.8% in 2026 benefiting potentially from the indirect effects of higher hydrocarbon growth, including more investment, government spending and confidence in the economy.
September’s PMI survey indicated strong optimism about future output, with around 15% of respondents expecting increased activity over the next year.
(Reporting by Reuters; Editing by Toby Chopra)
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