S&P PMI: UAE non-oil private sector recovers in August ’24

The UAE non-oil private sector experienced a rebound in August 2024, with the S&P Global UAE Purchasing Managers’ Index  (PMI) rising to 54.2 from a 34-month low of 53.7 in July.

This increase reflects a notable recovery in business activity, supported by a surge in new orders, particularly from international clients. This marks the fastest rise in new orders since March. Despite the recovery, input price pressures persisted, leading to higher output charges for the fourth consecutive month. The rate of business expansion, however, was the second-slowest in over 18 months.

The survey highlights a significant uptick in new export orders, the strongest since October 2023, contributing to a five-month high in overall new business growth. Output levels also saw an increase, though the growth rate was among the weakest in the past three years. Businesses faced ongoing challenges with processing new orders, aggravated by supply chain disruptions and project work backlogs.

David Owen, Senior Economist at S&P Global Market Intelligence, commented that while the UAE PMI showed improvement in August, it remained below earlier-year levels. He cautioned that rising costs could impact demand, despite confidence in sustained output growth. The survey also noted a sharp rise in input and wage costs, though overall cost pressures were the lowest in four months.

Attribution: S&P Global United Arab Emirates PMI®

Subediting: M. S. Salama