United Arab Emirates: PMI inches down in September
October 6, 2015
The Emirates NDB Purchasing Managers’ Index (PMI) moderated in September, dropping from August’s 57.1 to 56.0. August’s figure had marked a six-month high. As a result, the PMI moved closer to the 50-threshold that separates expansion from contraction in the non-oil producing private sector.
In September, the rate of hiring dropped to its lowest level in six months and foreign orders contracted for the first time since May 2010. Nevertheless, there was an improvement in new orders and a pickup in manufacturing output. Moreover, job creation was strong in September, amid further growth of new businesses. Analysts added that, “underlying data suggested that sharp rises in both output and new orders contributed to the strong performance of the sector as a whole. Despite easing slightly since August, the respective rates of expansion remained above their historical averages. Enhanced marketing strategies and reputations for quality were cited as factors behind growth of new business, which subsequently led to a rise in production during the month.”
Author: Dirina Mançellari, Senior Economist