United Arab Emirates: PMI inches up in December
January 4, 2017
The Emirates NDB Purchasing Managers’ Index (PMI) inched up to 55.0 in December, from November’s 54.2. December’s result was well above the year-to-date average of 53.9. The index remains comfortably above the 50-threshold that separates expansion from contraction in the non-oil producing private sector.
The reason behind December’s increase was the return to growth of new export orders for the first time in six months. An increase in business activity also bolstered economic activity and job creation. Conversely, prices continued to fall despite the higher purchasing costs for businesses. Emirates NDB commented that, “strong gains in output and new orders have been hard-won however, with firms continuing to offer discounts and promotions in order to secure orders.”
Author: Andrea Vetrugno, Economist