UAE's non-oil business sector saw its slowest growth rate in nearly three years this July. The S&P Global UAE Purchasing Managers' Index (PMI) dropped to 56.0 from 56.9 in June, indicating that competitive conditions, increased price pressures, and capacity constraints have negatively impacted performance. Despite the challenges, the PMI remains above the 50.0 threshold, signaling overall expansion. The new orders sub-index fell to 59.0 from 60.1, reflecting reduced demand, while the employment sub-index also declined, indicating slower job creation. However, business confidence remains optimistic, driven by expectations of future market improvements.
Overall, the UAE's non-oil economy is facing headwinds, but businesses remain hopeful for better conditions ahead.
