United Arab Emirates: PMI falls to lowest level in five months in February
March 3, 2015
The HSBC Purchasing Managers’ Index (PMI) fell from 59.3 in January to 58.1 in February, thus reaching the lowest level in five months. Despite the drop, the PMI remains firmly entrenched above the 50-threshold that separates expansion from contraction in the non-oil producing private sector.
February’s figure mainly reflected slower expansion in output and new orders. In addition, input costs have fallen due to lower oil prices. HSBC analysts added that, “the rates of expansion slowed since January. Nonetheless, the outlook for the UAE remains bright, with employment rising at a faster pace and cost pressures easing as a result of lower fuel prices.”
Author: Dirina Mançellari, Senior Economist