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UAE sales growth slows<\/strong><\/p>\n\n\n\n Sales growth in the UAE\u2019s non-oil private sector weakened for the fourth consecutive month in August, pushing new orders to their lowest level since mid-2021.<\/p>\n\n\n\n \u201cThe slowdown added to concerns of fading growth momentum and meant that output was increasingly reliant on backlogs of work,\u201d said David Owen, senior economist at S&P Global Market Intelligence.<\/p>\n\n\n\n He noted that purchasing activity dropped for the first time since mid-2021, highlighting waning demand and softer supply chain conditions. <\/p>\n\n\n\n \u201cIn addition, a renewed drop in the amount of inputs purchased by non-oil businesses, the first since mid-2021, provides a further sign of fading demand in the second half of this year. The reduction came amid a softer improvement in supply chain conditions, which was also said to have disrupted markets,\u201d Owen added.<\/p>\n\n\n\n Although input price inflation eased in August, a sharp increase in wage costs offset the relief. Rising hiring activity and higher salary demands linked to the cost of living drove wage inflation. \u201cSelling prices also climbed at a faster rate during the month, which could raise concerns for consumers if the upward trend persists,\u201d Owen said.<\/p>\n\n\n\n The report showed the UAE\u2019s PMI was supported by stronger output growth, which accelerated to its fastest pace in six months and slightly exceeded the survey\u2019s long-term average. Panelists frequently cited increased sales, project activity, and expansion in local markets as drivers of momentum.<\/p>\n\n\n\n Kuwait\u2019s new orders weaken<\/strong><\/p>\n\n\n\n In Kuwait, output and new orders grew at their weakest pace since February.<\/p>\n\n\n\n \u201cInflationary pressures also eased, however, providing welcome respite for firms on the cost front and enabling competitive pricing policies to be maintained,\u201d said Andrew Harker, economics director at S&P Global Market Intelligence.<\/p>\n\n\n\n He added: \u201cCompanies were again reluctant to meaningfully increase their workforce numbers, which continued to put pressure on capacity and restrict their ability to finish projects on time. We will hopefully see job creation strengthen in the months ahead, but firms will likely wait and see if the demand picture strengthens before committing to new hires.\u201d<\/p>\n\n\n\n The report noted that while operating conditions improved, it was at the slowest rate since March. Still, Kuwait\u2019s non-oil private sector has posted consistent monthly growth over the past year.<\/p>\n\n\n\n Egypt faces cost pressures<\/strong><\/p>\n\n\n\n Egypt\u2019s PMI data pointed to a further deterioration in operating conditions, though the pace of contraction was milder than historical averages.<\/p>\n\n\n\n \u201cEmployment was also up for the second consecutive month, after a lack of hiring in the first half of the year. However, staffing gains were only mild, while firms remained reluctant to commit to new purchases, particularly as confidence in the year-ahead outlook remains weak,\u201d Owen said.<\/p>\n\n\n\n He added: \u201cPersistent inflationary pressures appear to be a key factor holding back company sales and output projections over recent months. While official CPI inflation has fallen from 2024 levels, it was still at a marked rate of 13.9 percent in July. However, the latest PMI data signaled that business cost pressures were at one of their lowest levels since early-2021.\u201d<\/p>\n\n\n\n Owen emphasized that if easing cost pressures translates into lower prices for consumers, demand could recover.<\/p>\n\n\n\n Still, August marked the sixth consecutive month of falling output and new orders in Egypt\u2019s non-oil economy. The report showed moderate declines across all surveyed sectors, with respondents citing weak demand amid challenging economic conditions and lingering inflation concerns. Although the pace of decline quickened slightly from July, it remained less severe than long-term averages.<\/p>\n\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" Business activity across Middle Eastern and North African economies showed mixed trends in August, with the UAE leading growth while Kuwait and Egypt recorded contractions,…<\/p>\n","protected":false},"author":2,"featured_media":2763,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15,16,4,7],"tags":[22,29,5,6,41,69],"class_list":["post-2762","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-finance","category-international","category-mena","tag-business","tag-egypt","tag-kuwait","tag-mena","tag-morocco","tag-uae"],"yoast_head":"\n![\"\"\/](\"https:\/\/www.arabnews.com\/sites\/default\/files\/pictures\/September\/996511\/2025\/shutterstock_1285992259.jpg\")
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