UAE PMI Slows as Production Costs Rise

UAE PMI showed a slight slowdown in the growth of the non-oil private sector in December, amid rising production input costs, while activity remained firmly in expansion territory.

Data from S&P Global indicated that UAE PMI eased to 54.2 points from 54.8 in November, staying above the 50-point threshold that separates growth from contraction.

Companies attributed ongoing expansion to higher new orders supported by improved market conditions, favorable government policies, and growing international demand.

However, some firms reported weaker sales due to intensifying competition and continued economic uncertainty.

The survey also showed that cost pressures reached their highest level in 15 months, driven by higher wages, transport, and maintenance expenses, prompting companies to raise selling prices for a sixth consecutive month.

Inventory levels declined sharply as businesses opted to utilize existing materials rather than expand stocks amid uncertain conditions.

Despite slower hiring, expectations for activity in 2026 remained generally positive, although business confidence slipped to some of its lowest levels in three years.