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UAE non-oil organization activity development gets in October, PMI shows

Development in the United Arab Emirates' nonoil private sector activity enhanced in October as output broadened more dramatically, however demand grew at the slowest rate in 20 months, a survey revealed on Tuesday.

The seasonally adjusted S&P Global UAE Getting Managers' Index increased to 54.1 in October from 53.8 in September, remaining above the 50.0 mark signifying development.

Following September's three-year low, the speed of growth in output grew to the highest considering that April, with the subindex surging to 61.3 in October versus September's 57.9 reading, associated in part to higher sales and healthy pipelines.

Nevertheless, the pace of growth in brand-new orders continued to soften, slipping to 55.9 in October from 56.7 in September, hitting the lowest level because February 2023, although much better global demand supported new sales.

A softening of new company growth in October contributed to indications that the non-oil economy is losing strength after a robust growth duration in late-2023/ early-2024, David Owen, senior financial expert at S&P Global Market Intelligence, said.

Participants indicated that market crowding was eating into sales and striking job production which slipped to a 30-month low, Owen said, adding that a long pipeline of work stockpiles and continuous agreements might still support future output.

In Dubai, the country's industrial and tourist center, non-oil activity development slowed throughout October, with its headline PMI dipping to 53.2 from September's 54.1 reading, in contrast to an general pickup in growth in the UAE.

Business self-confidence about the outlook over the next 12 months enhanced for the UAE as a whole in October from September's 18-month low, the survey revealed.

(source: Reuters)