S&P Global's October survey shows the UAE non oil PMI at 54.8, still firmly in growth, but selling prices rose at the fastest rate on record. Dubai's PMI edged up to 54.6.
The UAE's non oil private sector purchasing managers' index (PMI) stood at 54.8 in October, according to the latest S&P Global survey. That is slightly lower than in September, but any reading above 50 signals growth, so the sector is still expanding strongly. New orders grew faster than in September, new export orders rose at the quickest rate in two years, and expectations for the year ahead climbed to their highest since January.
The standout finding was prices: selling prices rose at the fastest pace on record as firms passed higher costs on to customers. Companies reported paying more for raw materials, fuel, energy, freight, maintenance, storage and rent, with successive petrol and diesel price rises among the drivers. David Owen, principal economist at S&P Global Market Intelligence, said the findings point to greater inflation risks for the UAE economy in the fourth quarter.
In Dubai the PMI rose to 54.6 from 54.5 in September, an eight month high. New business grew at the joint fastest pace since February, while output growth eased slightly from September's seven month high. Dubai firms cut jobs modestly, cost pressures were the strongest since June 2022 and selling prices rose at a record rate.
For property investors the picture cuts both ways: demand and business confidence remain firm, while rising costs for materials, energy and rent keep feeding into prices. Some firms said they switched to local suppliers because of regional conflict and disrupted shipping routes.
Source: Gulf News
