UAE's non-oil private sector activity reaches 11-month high in November

ABU DHABI Stronger market conditions in UAE drive faster increase in sales and employment growth quickens to 18-month high

- Staff Reporter, Gulf Today

UAE non-oil private sector activity expanded at the quickest pace for II months in November, as robust market conditions boosted new business. The expansion also prompted a faster increase in employment levels, which contributed to rising wage costs and higher overall expenses.

Companies further raised their selling prices in November, aiming to capitalise on strong demand and to offset rising input costs. They also expressed slightly increased optimism about activity over the next 12 months, with expectations recovering modestly from October's recent low.

The seasonally adjusted S&P Global UAE Purchasing Managers' Index (PMI)-a composite indicator designed to give an accurate overview of operating conditions in the non-oil private sector economy-reached a nine-month high of 54.8 in November, up from 53.8 in October and above its long-run average (54.3). The reading indicated a robust improvement in business conditions, as firms experienced greater inflows of new work and broadly positive market conditions.

New business volumes increased in November, with the growth rate reaching its strongest since January. Survey respondents pointed to a supportive market environment that facilitated larger client orders and boosted activity across many sectors.

Additionally, firms cited product innovation, market diversification and technology upgrades as key drivers of higher sales.