UAE Non-Oil Private Sector Rebounds in August, Driven by New Business Growth

UAE, 4 September, 2024 : The UAE's non-oil private sector saw a modest recovery in August, with the S&P Global UAE Purchasing Managers' Index (PMI) rising to 54.2 from a 34-month low of 53.7 in July. The growth was driven by increased new work, particularly from foreign clients.

Despite this uptick, the expansion rate was the second slowest in over 18 months, reflecting a less robust recovery compared to earlier in the year. David Owen, Senior Economist at S&P Global Market Intelligence, noted that while the PMI indicated solid growth, fewer companies reported increases in activity.

New business growth reached a five-month high, supported by strong domestic conditions and higher global demand. However, rising input costs led to higher output prices, which could dampen future demand.

Hiring growth in the non-oil sector slowed to its weakest in seven months, with some firms adding staff to boost output while others cut jobs. Despite this, companies remained optimistic about future economic conditions, expecting strong sales to support output in the coming months.

In Dubai, the non-oil private sector saw improved demand growth in August, though the rate of business activity expansion was the slowest since September 2021. Employment levels rose at a more moderate pace, and firms continued to face pressure from rising input costs.

Source : www.zawya.com