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UAE’s non-oil business ends 2024 with significant growth; PMI surges to 55.4%
Tadawul All Shares Index TASI.SA | 12385.00 | -0.01% |
UAE - Mubasher: The UAE’s seasonally adjusted Purchasing Managers' Index (PMI) rose for the third successive month in December to 55.4, compared to 54.2 in November 2024.
The reading reflected an accelerated expansion in the non-oil private sector economy, according to the latest S&P Global PMI data.
Increasing demands led to a hike in new business for nine months, which also drove a sharper surge in output.
However, a limited expansion in the workforce contributed to another sharp rise in outstanding work.
Input costs rose, although the rate of inflation retreated to its softest since last March.
For the third month running, non-oil companies witnessed a reduction in output charges in December.
Despite the level of confidence edging down for the second month running, non-oil companies expressed optimism towards the year-ahead outlook.
David Owen, Senior Economist at S&P Global Market Intelligence, said: "The UAE saw its best expansion in non-oil business conditions for nine months in December, with the latest PMI data closing out another year of continuous growth and putting the sector in a strong position for 2025."
"While margin constraints appear to be holding some firms back from recruiting more staff, as charges fell despite rising costs, there is certainly a need to boost resources to ensure firms capitalise on demand in the new year,” Owen added.
He noted: "Purchasing growth also quickened to a 13-month high, which could help to lift inventories after a subdued trend in the second half (H2) of 2024."