The S&P Global UAE PMI eased to 54.8 in October 2026 from 55.3 in September, yet continued to signal a solid improvement in non-oil private sector activity. Output remained on a strong upward trajectory, and growth in new orders accelerated, underpinned by firmer domestic and external demand. Notably, new export orders increased at their fastest pace in exactly two years.
On the cost side, input price inflation quickened to its highest level since June 2022, reflecting rising prices for raw materials, fuel, energy, freight, and rents. Companies responded by lifting their selling prices, pushing output price inflation to its strongest level since the survey began in August 2009.
Employment slipped marginally for the third time in five months, as some firms focused on cost control, even as backlogs of work continued to build amid robust demand. Nevertheless, business confidence strengthened to its highest point since January, supported by expectations of sustained demand and improving regional conditions.
