United Arab Emirates: PMI increases in November
December 5, 2016
The Emirates NDB Purchasing Managers’ Index (PMI) increased to a three-month high of 54.2 in November from October’s 53.3. The index remains comfortably above the 50-threshold that separates expansion from contraction in the non-oil producing private sector.
November’s result marked an improvement from October’s reading and was broadly in line with the year-to-date average of 53.8. The reason behind November’s increase was a robust expansion in new work, while employment also improved. In fact, higher demand strengthened job creation and purchasing activity. Emirates NDB commented that, “the November PMI data is encouraging as it continues to point to strong activity growth in the UAE, even as external demand remains soft. However, the environment remains competitive, and margins continue to be squeezed by rising input costs and declining output prices”.
Author: Andrea Vetrugno, Economist