(MENAFN- The Arabian Post)
The United Arab Emirates' non-oil private sector expanded at its fastest pace in nine months in December, driven by strong demand and increased business activity. The S&P Global UAE Purchasing Managers' index (PMI) rose to 55.4 from November's 54.2, marking the third consecutive monthly increase and remaining well above the 50.0 threshold separating growth from contraction. New business saw a significant uptick, but export demand growth softened, reaching a seven-month low. Backlogs of work accumulated rapidly, indicating capacity stress. Despite strong demand, employment growth was slow, with firms hesitant to recruit more staff due to margin constraints. Input cost inflation eased to its lowest since March 2024, helping businesses as they continued to face competition-driven price discounts. Confidence in future business activity remained low. In Dubai, the headline PMI increased to 55.5, signaling the strongest growth in operating conditions there in nine months.
The UAE's non-oil private sector has demonstrated resilience and growth, with the December PMI reaching its highest level since March. This performance underscores the sector's robust expansion, driven by strong demand and increased business activity. The significant rise in new business, as indicated by the new orders subindex, suggests sustained demand across various industries. However, the softening of export demand growth to a seven-month low highlights potential challenges in international markets. The rapid accumulation of backlogs points to capacity constraints, indicating that businesses may need to enhance their operational efficiency to meet demand. Despite these challenges, the easing of input cost inflation to its lowest level since March 2024 provides some relief to businesses, allowing them to manage costs more effectively. Nonetheless, firms remain cautious about future business activity, reflecting uncertainties in the economic landscape.
See also
Apple Plans Fifth UAE Store as Local Investment Climbs
In Dubai, the non-oil private sector's performance was particularly strong, with the headline PMI rising to 55.5 in December from 53.9 in November. This increase signifies the strongest growth in operating conditions in Dubai in nine months, driven by robust demand and increased business activity. The city's real estate sector, in particular, has been a significant contributor to this growth, with major developers reporting substantial gains. The positive performance in Dubai contrasts with other regions, where growth has been more subdued. This disparity highlights the dynamic nature of the UAE's economy and the varying performance of its emirates.
The UAE's non-oil private sector's growth is a positive indicator of the country's economic health, reflecting the effectiveness of diversification strategies and the resilience of the business community. The strong performance in December suggests that the sector is well-positioned to continue its growth trajectory into the new year. However, businesses must remain vigilant and adaptable to navigate potential challenges, including capacity constraints and uncertainties in international markets. The government's ongoing support and strategic initiatives will be crucial in sustaining this growth and ensuring the continued success of the non-oil private sector.
The UAE's non-oil private sector has demonstrated resilience and growth, with the December PMI reaching its highest level since March. This performance underscores the sector's robust expansion, driven by strong demand and increased business activity. The significant rise in new business, as indicated by the new orders subindex, suggests sustained demand across various industries. However, the softening of export demand growth to a seven-month low highlights potential challenges in international markets. The rapid accumulation of backlogs points to capacity constraints, indicating that businesses may need to enhance their operational efficiency to meet demand. Despite these challenges, the easing of input cost inflation to its lowest level since March 2024 provides some relief to businesses, allowing them to manage costs more effectively. Nonetheless, firms remain cautious about future business activity, reflecting uncertainties in the economic landscape.
See also
Mubadala Partners with Goldman Sachs for APAC Investment Push
Notice an issue?
Arabian Post strives to deliver the most accurate and reliable information to its readers. If you believe you have identified an error or inconsistency in this article, please don't hesitate to contact our editorial team at editor[at]thearabianpost[dot]com . We are committed to promptly addressing any concerns and ensuring the highest level of journalistic integrity.
ADVERTISEMENT
MENAFN08012025000152002308ID1109068087
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.