Positive Non-Oil Outlook in UAE Despite Slight PMI Dip in May

In May, the UAE’s non-oil private sector growth outlook remained positive, despite a slight decrease in the seasonally adjusted S&P Global Purchasing Managers’ Index from 56.6 in April to 55.5. The S&P Global report indicated that improved operating conditions led to increased business confidence, which reached its highest levels since October 2021. The PMI index considers readings above 50 as indicative of non-oil private sector growth, while those below 50 suggest contraction. According to David Owen, senior economist at S&P Global Market Intelligence, the latest headline reading of 55.5 signaled a robust improvement in business conditions, driven by marked upturns in activity and new work. He also noted that the Future Output Index showed optimism rising to the highest level since October 2021, with firms expecting the strong demand momentum to continue.