United Arab Emirates: PMI loses ground in June on weaker non-oil sector growth
July 10, 2016
The Emirates NDB Purchasing Managers’ Index (PMI) fell in June to 53.4 from 54.0 in May. The index is still comfortably above the 50-threshold that separates expansion from contraction in the non-oil producing private sector.
June’s result marked a moderation from May’s reading and was lower than the 12-month average of 54.3. Although output rose sharply in June, other aspects of the PMI were less rosy. Growth in exports, employment and purchasing activity were considerably weaker than their long-run averages. Input costs rose in June, although the increase did not push charges higher. Emirates NDB commented that, “the softening in new business and output growth in June may partly be due to the earlier start to Ramadan this year. Nevertheless, the output index remains relatively high and we continue to expect solid non-oil growth in the UAE this year.”
Author: Robert Hill, Economist