Hiring picks up in UAE's non-oil economy as April PMI stays at 54.0

Al Etihad

05-05-2025

5 May 2025 09:22
A.SREENIVASA REDDY (ABU DHABI)The non-oil private sector of the UAE's economy continued its expansion in April with the seasonally-adjusted S&P Global UAE Purchasing Managers' Index (PMI) remaining unchanged at 54.0, way above the 50.0 mark. PMI is an economic indicator that measures the business activity in the manufacturing and services sectors. It is based on surveys of company executives and reflects trends in new orders, production, employment, supplier deliveries, and inventory levels. A PMI above 50 indicates expansion, while below 50 signals contraction.'Non-oil private sector businesses in the UAE increased employment levels at a stronger pace at the start of the second quarter,' the S&P Global PMI report said. Output continued to expand sharply even as backlogs accumulated at a slightly softer rate.Hiring across the non-oil economy rose at the sharpest rate in 11 months. The report noted this followed a relatively subdued period of job creation, especially since the final quarter of last year.Surveyed businesses typically related higher employment to a growing need to address workloads, which survey data indicated were elevated since early 2024.The latest figures showed the rate of backlog accumulation easing to a six-month low, albeit remaining steep overall, the report said."The headline PMI's reading of 54.0, which was unchanged from March, signals that underlying business conditions are still improving robustly,' David Owen, Senior Economist at S&P Global Market Intelligence, said.Firms are hopeful that elevated demand levels and strong pipelines should propel activity higher in the coming months, Owen said. 'The April PMI results signalled a notable uptick in hiring activity across the non-oil private sector. After several months of mild increases in payroll numbers, job creation rose to its highest level in 11 months,' Owen added.Total new orders rose sharply, with the rate of growth accelerating from March. 'This was partly due to the strongest upturn in international demand while companies also reported gaining domestic clients,' the PMI report said. Input purchases at non-oil firms increased, as panellists reported growing demand for materials and components. The rate of growth was sharp, but softened from March's 68-month peak, the report said. The survey data also indicated a stronger improvement in supplier performance at the start of the second quarter. Firms mainly attributed this to efforts by vendors to increase their capacity, the report said. Input prices in the non-oil economy increased again during April. Prices charged were also raised, but at a slower pace than in March, as many panellists cited efforts to offer lower prices to customers amid strong competition.Looking ahead, surveyed firms remained confident that sales pipelines and resilient market conditions would support activity going forward. The degree of confidence ticked up for the third month running and was the best recorded in 2025 so far, the report said.
Dubai PMIThe latest survey data for Dubai signalled a softer upturn in operating conditions across the non-oil private sector during April. This was mainly due to a weaker increase in new business inflows. Order book volumes continued to rise sharply overall, contributing to another robust expansion in business activity.
Employment expanded during April, overturning a brief reduction in March, as firms reportedly looked to boost their capacity. The report has not given out a definitive PMI number for Dubai non-oil economy for month of April.