UAE non-oil sector business activity expands due to growth in demand

UAE non-oil sector business activity expands due to growth in demand

Non-oil business activity in the UAE expanded at a slower rate in November than in the previous month, a survey showed on Wednesday, as softer rise in new export business dampened sales growth.

The seasonally adjusted S&P Global UAE Purchasing Managers' Index ticked slightly lower to 57 in November from 57.7 in October, yet well above the 50.0 threshold mark that signals expansion in activity.

Firms reported a sharp rise in new business inflows and this upturn spurred inventory growth levels to rise to a near six-year high, placing some pressure on supply chains and material prices. Overall cost inflation remained stronger than recent trends, but selling prices were largely stable, the report said.

"The strong run of demand growth in the UAE non-oil economy sparked a rapid increase in input buying during November, as firms looked to ensure they were in a good position to take advantage of growth opportunities. Indeed, the uplift in buying – the fastest since July 2019 supported the most rapid build-up of stocks in close to six years, benefitting both local businesses and trade partners," said David Owen, senior economist at S&P Global Market Intelligence.

Although total sales expanded at one of the fastest seen in close to