UAE Non-Oil Business Activity Grows in October Despite Softening Demand

UAE, 5 November, 2024 : UAE's non-oil business sector experienced growth in October, as indicated by the S&P Global UAE Purchasing Managers' Index (PMI), which rose to 54.1 from 53.8 in September. However, demand softened to its lowest level since February 2023, leading to weaker job creation and a decline in selling prices.

David Owen, Senior Economist at S&P Global Market Intelligence, noted that the decrease in new business growth suggests the non-oil economy is losing momentum after a robust period earlier this year. Increased market competition has contributed to declining sales, resulting in job creation hitting a 30-month low.

Despite these challenges, firms remain optimistic about future growth, aided by a slowdown in input cost inflation. Non-oil businesses reported the softest rise in overall input costs in six months, with decreases in both purchase prices and wages. 

In Dubai, non-oil companies reported a slower improvement in operating conditions, with the headline PMI dropping to 53.2 from 54.1 in September. Average selling prices fell for the first time since April, attributed to heightened competition, while new business intakes grew at the slowest pace since early 2022.

Source : www.zawya.com