Business activity in the UAE's non-oil private sector in August improved at the fastest pace since December 2024 in a clear sign of recovery as companies shake off the impact of the Iran war.
The seasonally adjusted S&P Global UAE Purchasing Managers' Index climbed to 55.3 from the 52.7 recorded in July. A reading above 50 indicates growth in economic activity, while one below indicates a contraction.
The latest PMI index was supported by a substantial rise in new business, the joint-strongest level for more than two years, as well as sharper output growth, inventory expansion, easing supply constraints and lower price pressures.
“The UAE's non-oil economy has shifted decisively into a higher gear, with August's PMI … suggesting that firms are adapting more effectively to the current market environment,” David Owen, principal economist at S&P Global Market Intelligence, said.
“Demand growth accelerated, while delivery times improved and cost pressures softened, indicating a broad-based strengthening in domestic economic conditions.”
The "robust upturn" in August reflected a combination of growing sales momentum and renewed stock build-outs, the S&P Global survey showed.
Companies also reported improvement in customer activity that "came amid a steady, if not complete, easing of economic caution arising from the Middle East conflict", S&P Global said.
Export demand also increased, marking back-to-back expansions following a spell of decline throughout the second quarter.
