United Arab Emirates: PMI increases for second consecutive month in March
April 5, 2016
The Emirates NDB Purchasing Managers’ Index (PMI) rose from 53.1 in February to 54.5 in March, the highest figure in four months. The index has moved further above the 50-threshold that separates expansion from contraction in the non-oil producing private sector.
In March, the acceleration was due to faster growth in output and new orders, which also were the driving factors behind February’s increase. New marketing projects stimulated domestic demand that worked against lackluster global demand to help output pick up in March. Reduced global demand dragged on exports, which witnessed its first decrease in six months. Emirates NBD analysts added that, “while the improvement in the Emirates NBD UAE PMI in March is encouraging, the average PMI for Q1 2016 signals a further slowdown in the non-oil private sector of the UAE at the start of this year. Nevertheless, the solid growth in output and new orders in the first quarter suggests that domestic demand is holding up well despite the headwinds of a strong USD and low oil prices.”
Author: Robert Hill, Economist