UAE: Non-oil PMI falls in June
The S&P Global United Arab Emirates PMI fell to 54.6 in June from 55.3 in May. As a result, the index remained above the 50.0 no-change threshold, but signaled a softer improvement in non-oil private-sector operating conditions compared to the previous month.
Competitive pressures, weaker job creation, and a slowdown in output growth were key contributors to the deceleration. Additionally, the aftermath of April’s floods and ongoing supply chain challenges due to the Red Sea crisis led to a marked increase in outstanding work. Despite these challenges, there was a notable rise in new work and export volumes.
On the pricing front, businesses faced a sharp increase in input costs, which led to the quickest rise in average prices charged since April 2018. Finally, business sentiment remained positive, with companies expressing optimism about future activity levels, albeit slightly lower than in previous months.