UAE Non-Oil Sector Growth Hits 7-Month High

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The S&P Global UAE PMI rose to 54.2 in September 2025 from 53.3 in August, marking the highest level since February. New orders expanded at the fastest pace in seven months, rebounding from August’s four-year low, supported by stronger demand, increased client engagement, and new projects. This drove a robust increase in output. Firms responded by raising employment at the sharpest rate since May. Backlogs of work continued to accumulate, although the latest uptick was the second weakest in 20 months. Purchasing activity also rebounded in September, following its first decline in over four years the previous month, while improvement in delivery times was the best recorded in five months. However, firms remained cautious with regards to their inventories. Turning to prices, output price inflation softened in September, as concerns about competition for new work further limited firms' ability to pass on higher costs. Finally, year-ahead expectations remained firmly positive.

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