{"id":99384,"date":"2025-01-07T00:00:00","date_gmt":"2025-01-07T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/uae\/non-oil-business-activity-sees-most-growth-in-nine-months-in-december\/"},"modified":"2025-01-07T00:00:00","modified_gmt":"2025-01-07T00:00:00","slug":"non-oil-business-activity-sees-most-growth-in-nine-months-in-december","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/uae\/2025\/01\/07\/non-oil-business-activity-sees-most-growth-in-nine-months-in-december\/","title":{"rendered":"Non-oil business activity sees most growth in nine months in December"},"content":{"rendered":"

Non-oil business activity capped off the year with its best performance in nine <\/strong>months in December<\/strong> as robust demand drove an increase in new business, according to S&P Global\u2019s UAE Purchasing Managers\u2019 Index (pdf)<\/a>. The UAE\u2019s PMI jumped to 55.4, up from 54.2 in November<\/a>, positioning it firmly above the 50.0 threshold separating growth from contraction.<\/p>\n

Businesses expanded output due to buoyant market conditions<\/strong>, with businesses securing new clients and increased order volumes. The uptick in new work was driven by \u201chigher demand, projects in progress, discounted prices and favorable weather conditions,\u201d the report said.<\/p>\n

Another strong year ahead? <\/strong>\u201cThe 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,\u201d Senior Economist at S&P Global Market Intelligence David Owen said. <\/p>\n

Business sentiment for 2025 was optimistic<\/strong>, though levels of confidence were at their second lowest since early 2023. <\/p>\n

On the downside, backlogs are piling up: <\/strong>Employment continued to its slow growth rate \u2014 marking its slowest in more than two and a half years \u2014 due to margin pressures and limitations on staff recruitment. This limited workforce expansion increased the volume of outstanding work and added strain on inventories, with Owen saying \u201ccapacity levels remain under considerable stress\u201d and highlighting a \u201cneed to boost resources to ensure firms capitalize on demand in the new year.\u201d<\/p>\n

Both costs and prices fell: <\/strong>Non-oil companies saw a reduction in input price inflation for the fourth time in five months. Despite the cost of raw materials, shipping, foodstuff and technology rising, average price charges fell due to strong competition driving discounting.<\/p>\n

MEANWHILE, IN DUBAI- <\/p>\n

Dubai also sees 9M high: <\/strong>The Dubai PMI rose to 55.5 in December \u2014 up from 53.9 in November, due to a sharp uptick in output and new orders following increased client demand and busy markets, with rates of growth trumping overall UAE levels.<\/p>\n

Employment rose slightly<\/strong> due to the new business growth, while output charges rose and inventories of inputs saw a decline.<\/p>\n

Businesses are less confident about the year ahead<\/strong>, with confidence dropping to its lowest level since May 2021 and only 6% predicting output growth.<\/p>\n

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