The end of September 2024 saw the weakest growth in the UAE’s non-oil business activities in three years, with fewer new orders and fewer job opportunities having an impact on overall output.
In September, the seasonally adjusted SandP Global UAE Purchasing Managers’ Index (PMI) dropped from 54 points in August to 53 points.
“The UAE PMI continued to show a loss of momentum in the non-oil private sector, with growth having softened considerably since the start of the year,” David Owen, senior economist at S&P Global Market Intelligence said, as reported by Zawya.
The month of September 2024 saw the mildest increase in total employment since the end of 2022 as a result of businesses reporting fewer hires due to a slowdown in new order growth.
Business activity increased at its slowest rate since September 2021, despite rising demand driving up output.
A robust increase in export sales and reports of robust local market conditions contributed to the recent survey period’s sharp rise in new business levels received by non-oil firms.
Company owners stated that more competition limited sales and that more difficult market conditions made them cautious.
Businesses reported high price pressures from sources such as labour, transportation, machinery, technology, and gasoline, and input costs also increased significantly in September. However, the overall cost inflation rate decreased to its lowest level since April.
Dubai PMI
In September 2024, the Dubai PMI indicated a strong improvement in business conditions for the private sector that is not oil-related.
Even though the growth in new business volumes was slower, overall activity levels increased at their fastest rate in four months.
Non-oil companies increased hiring and inventory levels as a result of the expansion more than they did in August 2024.
Meanwhile, Suhail al-Mazrouei, the energy minister of the United Arab Emirates, stated that OPEC+, despite not producing the majority of the world’s oil, is doing a commendable job of stabilising the oil market.