United Arab Emirates: PMI inches up in December
January 6, 2015
The HSBC Purchasing Managers’ Index (PMI) inched up from 58.3 in November to 58.4 in December. As a result, the PMI remains firmly entrenched above the 50-threshold that separates expansion from contraction in the non-oil producing private sector.
December’s figure mainly reflected a faster pace of expansion in production, which rose to the second highest rate in the series to date, and a sizeable increase in new orders. This situation prompted businesses to increase their staffing levels. In turn, inflationary pressures rose in December mainly due to higher wage growth and increases in purchasing costs. HSBC analysts added that, “[w]e expect lower oil prices to weigh on the economy into 2015, but for now demand is holding up well. That now orders as well as output have remained strong is particularly encouraging.”