United Arab Emirates: PMI continues to moderate in October
November 3, 2016
The Emirates NDB Purchasing Managers’ Index (PMI) dropped to a six-month low of 53.3 in October from September’s 54.1. The index remains comfortably above the 50-threshold that separates expansion from contraction in the non-oil producing private sector.
October’s result marked a moderation from September’s reading and was broadly in line with the year-to-date average of 53.8. The reason behind October’s drop was a weak rise in new work, while employment also remained subdued. Moreover, poor demand and high competitiveness led firms to cut prices for the twelfth consecutive month. Emirates NDB commented that, “although the headline PMI index declined in October, output growth remains very strong. […] Overall, growth momentum appears to have eased at the start of Q4 after a relatively strong Q3, but the data still points to solid expansion in the UAE’s non-oil private sector in October”.
Author: Andrea Vetrugno, Economist