Regional firms pass on costs as Gulf demand firms

September’s PMI surveys point to a firmer recovery in Gulf non-oil activity, but with greater price pressures. The UAE and Saudi Arabia both recorded strong headline readings as demand improved and disruption from the mid-year conflict continued to fade. Egypt moved in the opposite direction. Its headline PMI fell further below the 50 threshold as output and new orders contracted more sharply.

The UAE’s S&P Global PMI and Saudi Arabia’s Riyad Bank PMI both stood at 55.3 in September. The UAE reading matched August’s 20-month high. Saudi Arabia’s index rose from 53.8 to its strongest level since February. Dubai reinforced the UAE picture, with its headline index rising to 54.5 from 54.1, the highest since January. Egypt’s S&P Global PMI fell to 47.2 from 49.6, reversing much of August’s improvement...

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