ABU DHABI, Dec 5 (Reuters) – The United Arab Emirates’ non-oil private sector output expanded at its fastest pace in 11 months in November, driven by robust market conditions and a surge in new business, a survey showed on Friday.
The seasonally adjusted S&P Global UAE Purchasing Managers’ Index (PMI) rose to 54.8 in November from 53.8 in October, marking a nine-month high, and remained well in growth territory.
“Strong customer demand and healthy sales pipelines encouraged firms to expand both their output and staffing,” said David Owen, senior economist at S&P Global Market Intelligence. Employment growth reached an 18-month high, though the rise in wage costs added to overall business expenses, he noted.
New business volumes saw their strongest growth since January, supported by a favourable market environment, product innovation, and diversification efforts. The new order sub-index rose to a reading of 57.4 in November, from 56.0 the previous month.
However, the rise in employment was accompanied by increased pressure on wages, as firms cited the need to raise salaries due to cost-of-living increases and skill shortages. This contributed to the sharpest rise in input costs in 14 months.
Despite these challenges, firms expressed slightly increased optimism about future activity, with expectations recovering modestly from October’s recent low.
In Dubai, the UAE’s business and tourism hub, the headline PMI remained steady at 54.5 in November, the same as the previous month, driven by stronger output and robust demand. However, input prices increased at the fastest pace in six months, prompting firms to raise their selling prices.
(Reporting by Reuters; Editing by Toby Chopra)
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