UAE - Mubasher: The seasonally adjusted Purchasing Managers' Index (PMI) of the UAE edged up to 53.3 in August 2025 from 52.9 in July, according to the latest S&P Global PMI data.
The reading indicated an improvement in overall business conditions, as the non-oil private sector businesses witnessed a rise in new orders at the slowest pace since June 2021.
The PMI highlighted the competitive pressures and supply chain challenges, which made it harder for firms to complete sales.
Despite weaker sales, UAE non-oil firms expanded output at the fastest pace in six months, supported by projects, local market activity, and backlogs.
Backlogs of work continued to grow, though at a moderate pace. Meanwhile, the input purchases fell for the first time in over four years as firms reduced stock levels in response to softer demand.
On the other hand, input price inflation rose for the second month in a row in August, reaching its highest level since February, driven by higher wages and performance incentives.
The staffing increased slightly, while purchase price inflation eased.
Selling prices were raised at the fastest pace in five months amid higher costs and strong sales.
David Owen, Senior Economist at S&P Global Market Intelligence, said: "Sales growth weakened again in the UAE non-oil private sector in August, easing for the fourth month running and bringing the new orders index down to its lowest level since the middle of 2021.”
“The slowdown added to concerns of fading growth momentum and meant that output was increasingly reliant on backlogs of work,” he added.
Owen noted: "In addition, a renewed drop in the amount of inputs purchased by non-oil businesses, the first since mid-21, provides a further sign of fading demand in the second half (H2) of this year. The reduction came amid a softer improvement in supply chain conditions, which was also said to have disrupted markets.”
