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The National
6 days ago
- Business
- The National
UAE non-oil business activity down in May amid tariff pressures
Business activity in the UAE's non-oil private sector slowed in May amid uncertainty stemming from the global tariff situation, although economic fundamentals remain "solid", S&P Global Market Intelligence said. The S&P Global Purchasing Managers Index for the Emirates declined to 53.3 last month from 54 in April, the agency said on Wednesday. Although well above the neutral 50 mark that separates expansion from contraction, the index was at its lowest since September 2021. Despite the dip, improvement in the UAE's non-oil economy remains strong as demand conditions remained robust, resulting in a marked increase in output, the report said. "Although businesses continued to welcome strong demand from their clients, there were some reports that competitive pressures and weaker trade amid US tariffs had weighed on growth," said David Owen, a senior economist at S&P Global Market Intelligence. "From an overall perspective, the survey signals that the UAE economy is performing well, but the softer increases in output and new orders hint at momentum easing," he said. The report also highlighted a record decrease in input stocks, as companies looked streamline their operations. Businesses benefitted from a softer rise in input prices, as inflation decelerated to its lowest since December 2023. "The sharp cutback in stocks and the broadly subdued outlook for activity suggest that firms are gearing up for softer growth," Mr Owen added. The UAE has been focusing heavily on diversifying its economy from oil by developing sectors such as technology, manufacturing, tourism, trade and innovation. The UAE's economy grew by 3.9 per cent in 2024, the Central Bank reported in April, with the non-oil growth up 4.6 per cent. The banking regulator expects the country's GDP to expand at 4.7 per cent this year, with non-oil growth at 5.1 per cent. The economy is expected to grow by 5.7 per cent in 2026. Globally, the sweeping US tariffs continue to cast a cloud of uncertainty over trade and supply chains, especially with US President Donald Trump remaining unpredictable over his policies. A number of companies in the UAE have said these tariffs have either no or minimal impact on their businesses, as they benefit from established local supply chains, and they are monitoring the situation so they can adjust accordingly. "Higher sales often translated into greater activity, although some reported that global economic uncertainty linked to US tariffs had negatively affected output," analysts at S&P Global said in the report. Meanwhile, Dubai's PMI remained at 52.9 in May, its joint lowest since the beginning of 2022, but S&P highlighted a "solid expansion" in operating conditions across the non-oil private sector. Businesses continued to receive higher levels of new orders, with the rate of growth ticking up to a four-month high. Panellists linked the upturn to improved client confidence and positive effects from marketing strategies and competitive pricing, it added.
Reuters
6 days ago
- Business
- Reuters
South Africa's business activity growth hits four-year high, PMI shows
JOHANNESBURG, June 4 (Reuters) - South African business activity grew at its fastest pace in four years in May, driven by a robust increase in private sector output and improved customer confidence, a survey showed on Wednesday. The S&P Global South Africa Purchasing Managers' Index (PMI) rose to 50.8 in May from 50.0 in April, indicating growth for the first time since November 2024. A PMI reading above 50 indicates growth, while below 50 points to a contraction. The index showed a marginal improvement in the private sector's health, with companies reporting increases in output, new orders and inventories. The output subindex reached its highest level since May 2021 as firms sought to recover from a first-quarter downturn, buoyed by new projects and rising domestic orders. Despite the positive domestic outlook, export orders continued to decline, albeit at a slower pace than in April, partly due to U.S. tariffs impacting foreign trade. However, improved supply chain conditions, including shorter delivery times, enabled firms to boost inventories at the fastest rate in a year. "The May PMI results added to signs of a strong second-quarter performance across the private sector economy. Businesses appear to be recovering sales after a lacklustre Q1, supporting rising activity and greater purchases," said David Owen, senior economist at S&P Global Market Intelligence. While input price inflation slowed, allowing firms to reduce selling prices for the second time in three months, staffing levels were cut slightly as companies cited restructuring and unfilled vacancies. Nonetheless, optimism about future output rose to a three-month high, driven by expectations of increased client demand and new product launches.
Reuters
6 days ago
- Business
- Reuters
UAE non-oil business growth slows in May, PMI shows
ABU DHABI, June 4 (Reuters) - Growth in the UAE's non-oil private sector slowed to its weakest pace in nearly four years in May, a survey showed on Wednesday, as demand remained strong but eased from recent highs. The seasonally adjusted S&P Global UAE Purchasing Managers' Index (PMI) fell to 53.3 in May from 54.0 in April, marking its lowest reading since September 2021, but remained above the 50.0 threshold that indicates growth. The rate of expansion in output was the slowest in 44 months in May, reflecting softening momentum in the non-oil sector even though demand conditions remained supportive. The sub index for output fell to 57.3 in May from 59.4 in April, and was the lowest reading since September 2021. The pace of new order growth remained robust but the sub index dropped to 56.2 in May from April's 56.9 reading, and was the softest in seven months. "Although businesses continued to welcome strong demand from their clients, there were some reports that competitive pressures and weaker trade amid US tariffs had weighed on growth," David Owen, senior economist at S&P Global Market Intelligence, said. The survey highlighted a record decline in inventories as firms streamlined holdings amid slowing growth. The accumulation of backlogs eased to a 16-month low, indicating a softer pace of demand. Business expectations for future output were subdued, with optimism falling to its lowest level since January. Dubai's non-oil private sector growth remained steady, with the headline PMI at 52.9 in May, the same as April, although demand momentum strengthened with the pace of new order growth quickening to a four-month high.
CNA
6 days ago
- Business
- CNA
Japan's service sector growth slows in May, PMI shows
TOKYO :Growth in Japan's service-sector activity slowed in May on weaker demand, offering little to mitigate falling factory activity and resulting in a near-zero growth for business overall, a private sector survey showed on Wednesday. The final au Jibun Bank Japan Services purchasing managers' index (PMI) fell to 51.0 in May from 52.4 in April, although it was higher than flash 50.8. An index reading above the 50.0 threshold indicates growth and a reading below indicates contraction. New business growth in the service sector eased to its slowest pace since November, while employment growth in services was the weakest rate since December 2023, the survey showed. Service-sector managers' confidence in their future outlook improved to a three-month high in May from April's four-year low, but the overall level stayed weaker than the post-pandemic average, according to the survey. "Concerns over the outlook often stemmed from uncertainty over future global demand, as well as labour shortages and rising costs," said Annabel Fiddes, Economics Associate Director at S&P Global Market Intelligence, which compiled the survey. "The latter was highlighted by a further steep increase in input prices, to suggest that official inflation data will remain strong." Input price inflation eased from April's 26-month high but remained elevated, with managers citing higher costs for energy, labour and transport, prompting service providers to continue raising their output charges roughly in line with April's pace. The slowdown in services, combined with a continued decrease in manufacturing, left overall private sector activity stagnant with the composite PMI dropping to 50.2 in May from 51.2 in April. "The weaker demand picture suggests that the private sector may struggle to bounce back in the near-term, and could translate into more cautious staff hiring in the months ahead," Fiddes said.
Fashion Value Chain
03-06-2025
- Business
- Fashion Value Chain
Centric Software Debuts AI Retail Platform at NRF Asia 2025
Centric Software® is unveiling its AI-powered concept-to-commercialization platform at NRF 2025: Retail's Big Show Asia Pacific, taking place from June 3–5 in Singapore. For the second year running, the enterprise tech leader will spotlight its integrated solutions tailored for the consumer goods industry—including fashion, luxury, home, footwear, food & beverage, and cosmetics. Centric's flagship PLM platform, along with tools like Centric Planning™, Pricing & Inventory™, Visual Boards™, Market Intelligence™, and PXM™, delivers real-time, data-driven support for strategic decision-making. These solutions are engineered to meet today's challenges—tariffs, shifting sourcing strategies, compliance pressures, and increasing consumer and sustainability demands. With the retail landscape in Asia undergoing rapid transformation, Centric Software equips brands and manufacturers with agile, AI-infused tools to optimize product development, accelerate time-to-market, and maintain profit margins—even amid disruption. Attendees can visit booth #1007 for demos and consultations across sectors, or catch President Fabrice Canonge's keynote on June 3, 1:45–2:15 PM at Expo Stage 3, titled 'Maximizing Profitability Amid Tariffs and Disruptions.' Customer Highlight: Singapore-based Phoon Huat Pte Ltd. has already adopted Centric PXM to streamline operations and improve speed-to-market. With over 18,000 global users, Centric's retail tech ecosystem continues to drive digital transformation at scale. Book demos or register with a discount: Visit Event Page
