The UAE's non-oil economy continued to grow steadily in November, with new orders rising at their quickest rate since August, according to a business survey.

This growth was fuelled by strong demand and competitive pricing, which contributed to a significant increase in new business and a sustained surge in business activity.

The seasonally adjusted S&P Global UAE Purchasing Managers' Index (PMI) reached 54.2 in November, slightly up from 54.1 in October. With the index well above the neutral 50.0 mark, it indicates ongoing strong growth in the health of the non-oil sector, Zawya reports.

“Businesses continued to see a marked upturn in sales, which spurred activity forward but also greatly added to outstanding work,” said David Owen, Senior Economist, S&P Global Market, adding, “employment growth slipped to a 31-month low.”

Despite the positive PMI figure, he noted that the survey data indicated a level of uncertainty among businesses regarding the long-term sustainability of this growth momentum.

“Confidence in future business activity was relatively subdued - the second-lowest since early last year - and there were further mentions from panellists that markets are becoming crowded, curbing pricing power,” Owen went on to say.

Meanwhile, the Dubai PMI rose to 53.9 in November, up from 53.2 in October, driven by a surge in new orders, which grew at the fastest rate since August. The increase in sales contributed to a strong rise in business activity.

However, employment levels dropped slightly for the first time since April 2022, as output expectations fell to a 23-month low and profit margins were pressured by rising purchase prices.

In addition, inventories were reduced for the first time since July, according to S&P's PMI survey.