The S&P Global UAE PMI edged down to 54.8 in October 2026 from 55.3 in September, but remained indicative of a solid improvement in non-oil private sector activity. Output continued to expand strongly, while new order growth accelerated, supported by stronger domestic and foreign demand. New export orders rose at the fastest pace in exactly two years. Meanwhile, input cost inflation accelerated to its highest level since June 2022, driven by higher prices for raw materials, fuel, energy, freight and rents. Firms passed on rising costs, pushing output price inflation to its highest level since the survey began in August 2009. Employment fell fractionally for the third time in five months as some firms sought to contain costs, while backlogs of work continued to increase amid strong demand. Business confidence nevertheless improved to its highest level since January, supported by expectations of robust demand and improving regional conditions.