United Arab Emirates: PMI inches down in October
November 3, 2015
The Emirates NDB Purchasing Managers’ Index (PMI) moderated in October, dropping from September’s 56.0 to 54.0. October’s figure marked the lowest level since April 2013. Despite the decrease, the PMI remains above the 50-threshold that separates expansion from contraction in the non-oil producing private sector.
In October, the deceleration was due to a slower growth rate in both output and new business. As a result, firms were more cautious with regard to their purchases. Analysts added that, “The overall loss of momentum was reinforced further by another modest rise in employment. The rate of job creation was muted in comparison with historical data and little-changed from the six-month low seen in September. Pressure on operating capacity meanwhile eased, with the latest rise in backlogs of work the weakest in the current 18-month sequence of accumulation.”
Author: Dirina Mançellari, Senior Economist