UAE: Non-oil PMI dips to eight-month low in April on weather disruptions

UAE PMI April 2024

UAE: Non-oil PMI dips to eight-month low in April on weather disruptions

The S&P Global United Arab Emirates non-oil Purchasing Managers’ Index (PMI) fell to an eight-month low of 55.3 in April from 56.9 in March. As a result, the index remained above the 50.0 no-change threshold, but signaled a softer improvement in non-oil private-sector operating conditions compared to the previous month.

April’s PMI reading was influenced by new orders increasing at their slowest pace since February 2023. This slowdown was largely attributed to heavy rainfall disrupting business operations and impacting sales, which also led to a sharp rise in backlogs of work. In addition, the competitive environment for new work intensified. Meanwhile, the non-oil private sector saw a sustained increase in staffing numbers, extending the period of job creation to two years, although the rate of employment growth was modest and the least marked since January.

Regarding prices and business sentiment, April saw faster rises in both purchasing prices and staff costs, driven by rising raw material prices and efforts to compensate employees for higher living costs. Despite these cost pressures, average prices charged by businesses decreased for the sixth consecutive month due to intense competition and efforts to stimulate sales through price discounting. Business optimism for the year ahead remained highly upbeat, albeit softening to a three-month low. This optimism was supported by buoyant market conditions, strong sales pipelines, and confidence in a swift recovery from weather-related disruptions.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest