ABU DHABI: Growth in non-oil business activity in the United Arab Emirates was slightly less robust in October, while business confidence slipped to its lowest ebb in nearly three years, a survey showed on Wednesday.
The seasonally adjusted S&P Global UAE Purchasing Managers’ Index retreated to a reading of 53.8 in October from 54.2 in September, but stayed well above the 50.0 mark denoting expansion.
Growth was driven by a robust rise in new orders, supported by improving economic conditions and increased marketing efforts.
However, the pace of new business growth softened compared with September, and foreign client orders increased only marginally.
The new orders subindex fell to 56.0 in October from September’s 57.2 reading.
Employment growth nearly stagnated, with job numbers rising at the slowest pace since March.
“This partly reflected a relatively subdued level of business confidence. In fact, the latest survey revealed that firms were the least optimistic in nearly three years,” said David Owen, senior economist at S&P Global Market Intelligence.
“Although most companies still anticipate that economic conditions will remain favourable and that order inflows will sustain activity, concerns regarding market competition and the potential impact on profit margins persisted.”
Input costs rose modestly, marking the slowest increase since June, which helped keep output charges stable for a second consecutive month.
In Dubai, the UAE’s business and tourism hub, the headline PMI reached a nine-month high of 54.5, 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.
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