Dubai’s private sector businesses saw another strong improvement in August, with the Dubai Purchasing Managers’ Index (PMI) rising to 53.6 points from 53.5 in July, indicating a robust recovery in the non-oil private economy.

Companies expanded production at the fastest pace in seven months, driven by increased customer sales and project activity, with overall demand also growing. Data from the UAE PMI showed rising production growth and business confidence, with the UAE PMI increasing from 52.9 to 53.3 points in August, remaining above the neutral 50-point mark.

Committee members noted that higher sales rates, ongoing project work, and growth in local markets confirmed this recovery. Supplier performance improved slightly, while non-oil companies reduced their input purchases for the first time in over four years.

The UAE saw a slight increase in employment rates across various non-oil sectors. Meanwhile, non-oil companies raised their selling prices at the fastest pace in five months, reflecting higher costs and strong sales.

Production expectations improved in August, with companies recording the highest confidence level since last October, hopeful that stable local economic conditions and strong client relationships will support growth in the coming year.

David Owen, Senior Economist at S&P Global Market Intelligence, said, “Purchasing price inflation eased in August, offset by rising wage inflation amid strong employment activity and higher living costs boosting wage demands.” Sales prices also rose at a faster pace in August.