The UAE’s non-oil private sector recorded its fastest expansion in 11 months in November, supported by strong market conditions that fuelled growth in new business, according to a business survey.
The seasonally adjusted S&P Global UAE Purchasing Managers’ Index rose to 54.8 in November from 53.8 in October, reaching its highest level in nine months.
“The improvement was frequently attributed to solid customer demand and well-supported sales pipelines, which encouraged companies to increase both output and staffing levels,” said David Owen, senior economist at S&P Global Market Intelligence.
New business volumes grew at their quickest rate since January, driven by favourable market conditions, product development, and diversification initiatives, the survey reported.
However, input costs climbed at the fastest pace in 14 months, reflecting rising living expenses and wage pressures.
Employment growth hit an 18-month high as companies stepped up recruitment, with the rise in sales contributing to a stronger increase in workloads.
“Yet the more pronounced expansion in employment was accompanied by a sharper rise in salary costs, as firms noted the need to adjust pay in line with cost-of-living pressures and talent shortages,” Owen added.
This pushed overall business expenses higher and could add to wider inflationary pressures in the months ahead, he said.
Expectations for future activity improved slightly from October’s near three-year low, with businesses citing strong sales pipelines and supportive market conditions as key drivers of optimism.
