UAE’s Non-Oil Outlook Positive Despite Slight PMI Dip in May

The UAE’s non-oil private sector growth outlook remained positive in May, even as the seasonally adjusted S&P Global Purchasing Managers’ Index fell to 55.5 compared to 56.6 in April. The S&P Global report noted that improved operating conditions drove business confidence to its strongest levels since October 2021. According to the index, PMI readings above 50 show non-oil private sector growth, while those below 50 signal contraction.

“The UAE PMI pointed to another strong performance across the non-oil sector midway through the second quarter of 2023. Despite slipping from April’s six-month high of 56.6, the latest headline reading of 55.5 signaled a robust improvement in business conditions, driven by marked upturns in activity and new work,” said David Owen, senior economist at S&P Global Market Intelligence. He added: “The Future Output Index showed optimism rising to the highest level since October 2021, with firms pinning their hopes on projections that the strong demand momentum will continue.”