United Arab Emirates: PMI inches down in May
June 3, 2015
The HSBC Purchasing Managers’ Index (PMI) inched down from 56.8 in April to 56.4 in May. Despite the monthly drop, the PMI remains firmly entrenched above the 50-threshold that separates expansion from contraction in the non-oil producing private sector.
May’s figure came on the back of a deceleration in new orders, which grew at the slowest rate since August 2013. Nevertheless, in May, output grew at the fastest rate in three months. In addition, payroll numbers in the country’s non-oil private sector continued to grow in May. HSBC analysts added that “with employment also rising solidly, the PMI looks set to remain comfortably inside growth territory over the coming months. On the price front, cost pressures remained relatively subdued, while average tariffs declined for the fourth month running, albeit only marginally.”
Author: Dirina Mançellari, Senior Economist