PMI data shows non-oil sector is in a strong position for growth in 2025
The UAE non-oil private sector expanded at its fastest pace in nine months in December, driven by strong demand and increased business activity, S&P Global’s UAE PMI revealed on Monday.
The seasonally adjusted S&P Global UAE Purchasing Managers’ Index (PMI) rose to 55.4 in December from 54.2 in November, remaining well above the 50.0 mark that separates growth from contraction, and was the third consecutive monthly increase.
The survey highlighted a sharp rise in new business, with the new orders subindex rising to 59.3 from 58.0 the previous month, suggesting robust demand. However, export demand growth softened, with that subindex falling to a seven-month low, explained a Reuters report.
Backlogs also continued to accumulate at a rapid pace in December.
“Capacity levels remain under considerable stress, illustrated by another marked increase in backlogs of work,” said David Owen, senior economist at S&P Global Market Intelligence.
However, companies’ confidence in future business activity remained muted in December.
For Dubai alone, the headline PMI rose to 55.5 in December from 53.9 in November, indicating the strongest growth in operating conditions in nine months.
Job creation
Owen also said that recruitment appears to be the limiting factor the pace of employment growth was barely changed from November’s 31-month low. “While margin constraints appear to be holding some firms back from recruiting more staff, as charges fell despite rising costs, there is certainly a need to boost resources to ensure firms capitalise on demand in the new year,” explained Owen.
“Softening cost burdens may support this, as the latest data signalled the slowest rise in overall input prices for nine months,” he added.
Purchasing growth also quickened to a 13-month high, which could help to lift inventories after a subdued trend in the second half of 2024.”
Source: gulfnews