UAE PMI October 2026: Firms Raise Prices at Record Pace

The UAE’s non-oil private sector continued expanding in October 2026, even as businesses raised selling prices at the fastest pace recorded by the S&P Global survey.

The UAE Purchasing Managers’ Index fell to 54.8 from 55.3 in September, signalling a slower—but still solid—improvement in business conditions. Readings above 50 indicate expansion compared with the previous month.

Stronger orders supported activity, while rising costs put pressure on margins and encouraged firms to pass more of those expenses to customers. The Voice of Branch County

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UAE PMI October 2026: Key findings

Indicator	October finding
Headline PMI	54.8, down from 55.3 in September
Business output	Continued to expand strongly
New orders	Growth accelerated
Export orders	Fastest growth in two years
Selling prices	Fastest increase since the survey began in August 2009
Input costs	Fastest increase since June 2022
Employment	Fell marginally
Business confidence	Highest since January

The results show that stronger demand and greater financial pressure can occur simultaneously. Companies continued winning business, but the cost of delivering goods and services increased.

Higher material, energy and freight costs squeeze firms

Businesses reported rising expenses for raw materials, fuel, energy and freight.

David Owen, principal economist at S&P Global Market Intelligence, said the acceleration in input costs coincided with the strongest increase in selling prices in the survey’s history.

Output growth eased only slightly from September’s seven-month high. Companies reported gains across construction, retail, tourism and manufacturing, although some also cited regional conflict, competition and weaker discretionary spending as constraints. The Voice of Branch County

The findings suggest businesses are increasingly adjusting customer prices to protect margins rather than absorbing the full increase in operating expenses.

What the price increases mean for inflation

Higher selling prices among surveyed businesses point to potential inflationary pressure as increased costs move through the economy.

However, the PMI selling-price measure is not the UAE’s consumer inflation rate. It records changes reported by participating businesses and does not establish how much the overall household cost of living has risen.

The eventual effect on consumers will depend on which prices increase, how widely those increases spread and whether businesses can maintain them without weakening demand.

For households, this makes forthcoming consumer-price data important. For businesses, it raises the challenge of balancing profitability with customers’ willingness to spend.

Stronger orders do not translate into more hiring

New business increased more quickly than in September, while export orders recorded their strongest growth in two years.

Employment nevertheless declined slightly, marking the third reduction in five months. Some companies reduced staffing to contain costs, even as demand remained strong.

Outstanding work continued to accumulate, indicating that businesses were not completing all incoming work immediately. Business confidence still improved to its highest level since January, supported by expectations of continued demand and better regional conditions. tradingeconomics.com

Why a lower PMI still signals growth

October’s decline from 55.3 to 54.8 does not mean the UAE’s non-oil private sector contracted. The index remained above the neutral 50 threshold.

It also does not mean the economy grew by 4.8%. PMI is a survey-based indicator of changes in operating conditions, rather than a direct measure of GDP growth.

The October results therefore describe an economy in which surveyed firms continued expanding, but at a slightly softer overall pace. The next question is whether demand remains strong enough to support activity as businesses charge more and keep tighter control over staffing costs.