{"id":108175,"date":"2025-10-06T00:00:00","date_gmt":"2025-10-06T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/uae\/non-oil-private-sector-growth-improves-by-the-most-in-seven-months\/"},"modified":"2025-10-06T00:00:00","modified_gmt":"2025-10-06T00:00:00","slug":"non-oil-private-sector-growth-improves-by-the-most-in-seven-months","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/uae\/2025\/10\/06\/non-oil-private-sector-growth-improves-by-the-most-in-seven-months\/","title":{"rendered":"Non-oil private sector growth improves by the most in seven months"},"content":{"rendered":"

The UAE's no<\/strong>n-oil private sector saw its largest expansion in seven months <\/strong>in September<\/strong>, marking a solid improvement in activity, boosted by new business intakes. The country\u2019s seasonally adjusted S&P Global PMI (pdf)<\/a> rose to 54.2 in September, up from 53.3 a month earlier<\/a>. <\/p>\n

September\u2019s reading lands just below the survey long-run average<\/strong>, suggesting a good recovery from <\/span>July\u2019s<\/a> plunge.<\/span><\/p>\n

New orders accelerated at their highest level since February<\/strong>, as demand recorded a strong rebound from August\u2019s four-year low, lifted by elevated client engagement and new projects. The sub-index for new orders surged to 57.2 in September, up from 53.1 a month earlier, according to Reuters<\/a>. \"Over 30% of surveyed firms reported an increase in new order intakes during the month, which drove a sharp improvement in sales growth from its over four-year low in August,\u201d S&P Global Senior Economist David Owen wrote in the report.<\/p>\n

The <\/strong>improved<\/strong> conditions helped boost output<\/strong>, with businesses increasing purchasing after cutting it for the first time in over four years in August. <\/p>\n

Input costs rose significantly in September, <\/strong>mirroring a broader trend throughout the third quarter. This increase was driven by higher purchase prices, although the impact was somewhat mitigated by an easing salary inflation.<\/p>\n

In turn, output inflation rose at a softer rate<\/strong> as businesses were reluctant to increase their selling prices amid competition concerns. \u201cCompetitive pressures were again noted as a key issue, with several panellists linking this to caution around purchasing and pricing decisions,\u201d Owed said.<\/p>\n

Employment inched up modestly, though at the fastest pace since May<\/strong>, helping ease backlog growth. \u201cCompanies continued to accumulate work-in-hand at a solid pace, but the uplift was the second-weakest in 20 months,\u201d the report read.<\/p>\n

Business sentiment remains positive<\/strong>: Non-oil firms' outlook for the year-ahead remained strong in September, but their optimism was marginally lower than August's 10-month high. \u201cAround 15% of respondents held a positive view about future output, while less than 1% were downbeat about their prospects,\u201d the note said.<\/p>\n

Things could turn towards moderation through the rest of the year:<\/strong> Looking ahead, non-oil sector activity across much of the Gulf is forecast to moderate, Capital Economics\u2019 James Swanston noted in a recent research note seen by EnterpriseAM last month. \u201cLow oil prices will more than offset rising output volumes and, in turn, export receipts will be weaker this year than last,\u201d Swanston wrote, adding that \u201ccurrent account and budget balances will deteriorate, prompting officials to make fiscal policy less supportive.\u201d<\/p>\n

OVER IN DUBAI-<\/p>\n

Dubai also had another good month: <\/strong>The emirate\u2019s non-oil private sector recorded another firm improvement in September, with its headline PMI inching up to 54.2 during the month, up from 53.6 in August, signalling a robust expansion amid a significant rise in new work levels and an increase in sales, output, and hiring. <\/p>\n

Input costs accelerated in September<\/strong>, as inflation hit a five-month high. However, firms slashed their selling prices for the first time since last November due to elevated competition.<\/p>\n

Job creation hit its fastest rate in 12 months during September<\/strong>, although the increase was marginal. Businesses also were more optimistic about the sector\u2019s performance in the future, compared with the end of 2Q 2025.<\/p>\n

ELSEWHERE IN THE REGION-<\/strong><\/p>\n