United Arab Emirates: PMI falls in April
May 3, 2016
The Emirates NDB Purchasing Managers’ Index (PMI) fell from 54.5 in March to 52.8 in April, the lowest figure in three months. Despite the decrease, the index is still above the 50-threshold that separates expansion from contraction in the non-oil producing private sector.
In April, slowing growth in output, new orders and input stocks all weakened the index. In particular, there was no increase in employment in the non-oil private sector, which ended a 51-month streak of increasing payrolls. According to Emirates NBD and Markit, the absence of growth in employment was the biggest factor behind the overall PMI decrease. Despite the soft employment figures, Emirates NBD analysts added that, “growth momentum in the UAE slowed a little in April after rebounding in March. External demand remains relatively subdued, and firms appear to be reluctant to increase hiring, despite solid growth in new orders and output last month. The PMI data year-to-date point to slower, but still positive, growth in the UAE’s non-oil sector, which is in line with our expectation for slower real GDP growth in 2016.”
Author: Robert Hill, Economist