United Arab Emirates: PMI climbs to six-month high in January
February 5, 2017
The Emirates NDB Purchasing Managers’ Index (PMI) rose from 55.0 in December to 55.3 in January, the highest figure in six months. The index has now been increasing uninterruptedly since October last year and remains comfortably above the 50-point threshold that separates expansion from contraction in the non-oil producing private sector.
January’s uptick was underpinned by expansions in output and new work thanks to greater foreign demand, with export orders picking up speed. In response to the improved business environment, companies took on new workers for the ninth month in a row. On the price front, despite a sharp rise in input costs, firms continued to cut their prices as competition remained fierce, having a detrimental effect on profit margins.
Author: Oliver Reynolds, Economist