United Arab Emirates: PMI hits six-month high in August
September 3, 2015
The Emirates NDB Egypt Purchasing Managers’ Index (PMI) increased in August, rising from July’ 55.8 to 57.1. The figure marked a six-month high. As a result, the PMI moved further above the 50-threshold that separates expansion from contraction in the non-oil producing private sector.
August’s figure came on the back of a faster expansion in output and new orders. Adding to that, in August, new businesses rose a faster pace than in the previous month despite slower growth in exports. Analysts added that, “the sharp rise in the UAE PMI in August confirms our view that Ramadan likely contributed to the softer readings in June and July. Encouragingly, new orders and output growth readings remain high, suggesting strong domestic demand. Slower growth in export orders last month may reflect the impact of currency appreciation relative to other emerging markets.”
Author: Dirina Mançellari, Senior Economist