UAE records highest employment growth since 2016: S&P Global

The employment growth in the UAE was at its highest since October 2016, as the Purchasing Managers’ Index hit 56.6, up from 56.1 in September, according to the latest data from S&P Global.

August saw a slightly higher PMI of 56.7, but S&P considers any readings above 50 as growth while those below 50 are marked as contraction.

The S&P Global report noted that non-oil business conditions in the UAE improved at a robust rate at the start of the fourth quarter, amid faster uplifts in both output and new orders.

“The upturn was led by sharp expansions in business activity and new orders,” said David Owen, an economist at S&P Global Market Intelligence.

The start of the fourth quarter recorded the second fastest rise in the rate of business activity since July 2019, and firms reported a consequential boost in output, according to the report.

Additionally, the inflow of new orders rose swiftly in October as firms posted the joint-strongest expansion for 11 months.

The report noted that lower fuel, metal and transport costs have partly offset the increase in other prices, bringing about a moderate increase in price pressures last month.

On the other hand, the report further noted that UAE’s businesses had the slowest rise in the export of new orders from abroad since the start of 2022 as global turbulences continue.

As the economy’s demand continues to accelerate, corporations encountered additional backlogs of work, partially attributable to standing projects and pandemic-linked shipping delays.

In response to the drawback in operating capacity, firms drove employment to its fastest pace since July 2016, as well as surged their purchasing activity to the highest since mid-2019 to create inventories for future work.