United Arab Emirates: PMI in January drops to multi-year low
February 3, 2016
The Emirates NDB Purchasing Managers’ Index (PMI) moderated in January, dropping from December’s 53.3 to 52.7. January’s figure marked a multi-year low. However, despite the decrease, the PMI remains above the 50-threshold that separates expansion from contraction in the non-oil producing private sector.
In January, the deceleration was due to slow growth of new work, which expanded at the weakest rate since November 2010. Growth in output, employment and input buying also disappointed. Analysts added that, “the slowdown in non-oil sector growth in the UAE over the last few months is in line with our expectations, as uncertainty about the economic outlook and low oil prices weigh on consumer and business sentiment, and as the strong USD continues to impact demand from emerging markets in particular.”
Author: Dirina Mançellari, Senior Economist