United Arab Emirates: PMI continues to signal strong growth in September
October 3, 2017
The Emirates NDB Purchasing Managers’ Index (PMI) dipped from a multi-year high of 57.3 in August to 55.1 in September. However, the index remains comfortably above the 50-point threshold that separates expansion from contraction in the non-oil producing private sector.
September’s figure was underpinned by a slightly slower increase in output. New export orders contracted, while orders from the domestic market remained highly robust. As a result of healthy economic conditions, employment rose for the 17th consecutive month, although as has been the case recently, it remained subdued overall. Stocks of purchases rose sharply in September, a sign that firms are confident of the good times continuing to roll in the coming months. On the price front, input cost inflation dipped in September, while wage pressures also dimmed.
Author: Oliver Reynolds, Economist