United Arab Emirates PMI January 2016

United Arab Emirates

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.”

FocusEconomics Consensus Forecast participants expect GDP to expand 3.3% in 2016, which is down 0.1 percentage points over last month’s projection. For 2017, the panel sees the economy increasing 3.2%.

Author:, Senior Economist

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United Arab Emirates PMI Chart

UAE PMI January 2016

Note: Emirates NBD Purchasing Managers’ Index. Readings above 50 indicate an improvement in non-oil business conditions while readings below 50 indicate a deterioration.
Source: Emirates NBD and Markit.

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