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.