UAE non-oil firms raise prices at record pace in October, PMI shows

What happened

The UAE non-oil private sector continued to expand in October, with the S&P Global PMI easing to 54.8 from 55.3 in September but remaining above 50, the level separating growth from contraction. Firms reported record-fast increases in selling prices as input costs rose, while new orders and export work strengthened.

Confirmed

Global impact / market context

Firms are passing higher costs for materials, fuel, energy and freight on to customers, potentially supporting revenue per sale but also risking weaker demand if buyers resist higher prices. The slight employment decline suggests some businesses are also controlling costs by reducing staff.

Analyst inference

Growth remained strong across construction, retail, tourism and manufacturing, and export work rose at its quickest pace in two years. However, regional conflict, competition and weaker discretionary spending were cited as concerns, creating a mixed backdrop for UAE non-oil businesses.

Confirmed

What to watch

1. Watch whether firms continue raising selling prices as input costs rise; further increases could support revenue but may make customers more cautious about purchases. Analyst inference
2. Track upcoming PMI readings for changes in new orders, export work and output, which would indicate whether October's business growth is continuing or fading. Analyst inference
3. Watch employment reports for signs that more firms are cutting headcounts to control costs, potentially weakening household income and consumer spending. Analyst inference

Evidence

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