The S&P Global UAE PMI fell to 53.8 in October 2025 from 54.2 in September, indicating a continued but slower improvement in non-oil private sector conditions. Business confidence fell to a 34-month low, as firms grew more cautious about future activity amid competitive pressures and margin concerns. The weaker sentiment led to a near-stagnation in employment growth, with companies hesitant to expand hiring. At the same time, input cost inflation eased for the second consecutive month, marking its softest rise since June, as supplier and wage pressures moderated. In contrast, output and sales growth remained firm, supported by solid demand and new project initiations. The rate of business activity expansion stayed above the survey’s historical average, underscoring the resilience of the UAE’s non-oil economy even as sentiment softened.