FX.co ★ UAE Non-Oil Private Sector PMI Edges Higher

In June 2025, the S&P Global United Arab Emirates PMI slightly increased to 53.5, up from May's 53.3, which had marked the slowest growth in over three years. This minor rise concealed varying trends: a sharper increase in output and stabilized inventories balanced a decline in new order growth, which reached its lowest point since September 2021. Businesses identified geopolitical tensions, particularly between Israel and Iran, as a significant factor dampening client demand. Despite the dip in sales, companies boosted production to reduce backlogs, which grew at their slowest rate in 17 months. Employment continued to rise, albeit at a reduced rate. Additionally, supplier delivery times extended at their slowest rate since April 2024, while a modest rebound in purchasing helped stabilize inventories after the record drop experienced in May. Regarding prices, input cost inflation eased to nearly a two-year low, with selling prices also experiencing a slight decrease. Business confidence rose to its highest level since November 2024, driven by hopes of improved sales should regional tensions subside.