UAE's non-oil business activity grows as jobs bounce back despite Iran war uncertainty
Business activity in the UAE's non-oil private sector climbed to a four-month high in July, while employment numbers rose, as companies continue to bounce back from the fallout of the Iran war . The seasonally adjusted S&P Global UAE Purchasing Managers' Index climbed to 52.7 from 50.8 in June. A reading above 50 indicates growth in economic activity, while one below indicates a contraction. The…
The UAE's non-oil private sector witnessed a surge in business activity in July, marking a four-month high, according to S&P Global data. The seasonally adjusted Purchasing Managers' Index (PMI) rose to 52.7 from 50.8 in June, indicating growth in economic activity. This was the highest reading since March, suggesting a moderate improvement in the sector's health.
Despite the broader economy facing a slowdown due to the Iran war, underlying fundamentals remained robust. David Owen, principal economist at S&P Global Market Intelligence, attributed the improvement to the restoration of business confidence and smoother trade flows. However, business confidence for future output declined for the third consecutive month, with only 7% of firms anticipating growth over the next year.
The labor market, which had one of the steepest declines in June post-Covid-19, also showed signs of recovery in July. Employers cited "stronger demand" for increased hiring, though overall business confidence towards future output remained low. The volatile situation in the Strait of Hormuz continues to introduce uncertainty and contribute to price pressures, according to Owen.
Written by urgent.news from The National UAE's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
