S&P Global: UAE’s non-oil private sector PMI up in Dec ’24

The UAE’s non-oil private sector PMI rose to 55.4 in December 2024, marking the highest reading in nine months and signaling strong expansion.

Key factors driving growth included robust demand, leading to the fastest rise in new business in nine months and a sharp increase in output.

Capacity Strains and Rising Backlogs

Despite these gains, businesses faced challenges with capacity constraints, resulting in a notable rise in backlogs. Employment growth remained slow, reflecting recruitment limitations and margin pressures.

Slower Input Cost Inflation and Discounted Prices

Input costs increased, though inflation slowed to its lowest rate since last March, while output charges fell for the third consecutive month as companies sought to support sales growth.

Optimism for 2025 Declines Slightly

Optimism for the year ahead declined slightly, with confidence at its second-lowest point since early 2023.

Increased Purchasing Activity Amid Inventory Challenges

The data also highlighted a rise in purchasing activity, as firms sought to replenish inventories amid increased demand. However, input inventories continued to fall, and delivery times slowed compared to November.

Solid Growth Trajectory Moving Into 2025

Despite some challenges, the UAE’s non-oil sector remains on a solid growth trajectory heading into the new year.

Attribution: Amwal Al Ghad English

Subediting: M. S. Salama