Supported by the largest production expansion rate in 7 months

The non-oil sector in Dubai continued its strong growth in August, with the headline Purchasing Managers’ Index (PMI) recording 53.6 points in August, a slight increase from 53.5 in July, supported by the largest production expansion rate in 7 months.

Data from the UAE’s adjusted PMI by S&P Global indicated that company production in Dubai expanded at the fastest pace in 7 months, driven by increased customer sales and project activity. Total demand volume also grew, with sales prices rising for the ninth consecutive month in August.

The UAE PMI rose from 52.9 points in July to 53.3 points in August, indicating an improvement in economic conditions, thanks to a sharp expansion in production levels in mid-Q3. Activity growth was the fastest in 6 months and slightly above the long-term average for the study.

The study noted that higher sales rates, ongoing project work, and growth in local markets confirmed this recovery.

According to the index, non-oil companies raised their sales prices at a faster pace, with improved production expectations in August. Overall, companies recorded the highest confidence rate since last October, with many expressing hope that stable local economic conditions and strong client relationships will support growth in the coming year.