The UAE's non-oil private sector saw a slowdown in growth during May, with the S&P Global Purchasing Managers' Index (PMI) falling to 53.3 from 54.0 in April — its lowest reading in 44 months. Despite the drop, the index remained firmly above the 50.0 threshold, signalling continued, albeit softer, expansion. Output and new orders remained robust but grew at a slower pace, as firms cited strong client demand and effective marketing while also noting concerns over global uncertainty and US tariff policies. The growth in backlogs eased to a 16-month low, while purchasing activity rose at the weakest rate in over two years. Businesses reacted by reducing inventories at a record pace, streamlining stock levels amid softer momentum. Employment growth, however, hit a 12-month high, driven by sustained demand and elevated workloads. Input cost inflation slowed to its weakest since December 2023, and selling prices rose marginally for a fifth consecutive month. Optimism over future activity also declined, falling to its lowest level since January. Meanwhile, the Dubai PMI held steady at 52.9, reflecting a solid improvement in business conditions. New orders rose at the fastest pace in four months, but overall output growth remained subdued, and inventory levels dropped for the first time in 2025. Attribution: Amwal Al Ghad English Subediting: M. S. Salama
