The S&P Global PMI for Dubai indicated a notable increase in new order inflows for non-oil businesses in October, bolstering a substantial rise in production levels. Employment rates also saw an uptick for the seventh consecutive month, albeit at a relatively moderate pace.
The index highlighted that the costs of production inputs surged at the fastest rate in six months, spurred by rising raw material and technology prices, alongside reported wage increases. Consequently, selling prices saw an upward shift.
Additionally, the non-oil private sector in the UAE experienced another marked improvement in business conditions in October, driven by strong new order growth, which contributed to a significant expansion in overall commercial activities.
Firms also welcomed a slowdown in the increase of input prices for the second consecutive month in October, aiding in the relative stability of production costs. However, confidence regarding future business activity declined, contributing to a near stagnation in employment growth.
The total activity level within the non-oil private sector saw a considerable boost in October, with many firms indicating that improved sales and new project launches encouraged expansion. The growth rate recorded was above the historical average for the third month running.
54.5
This is the PMI level recorded for October.
Increased new order inflows support a sharp rise in production.