United Arab Emirates: PMI picks up in July
August 3, 2017
The Emirates NDB Purchasing Managers’ Index (PMI) rose from 55.8 in June to a three-month high of 56.0 in July. As a result, the index remains comfortably above the 50-point threshold that separates expansion from contraction in the non-oil producing private sector.
July’s figure was underpinned by significant rises in output and new orders, as firms were buoyed by robust domestic demand. In contrast, the external sector was fairly weak, mirroring last month’s tendency; new export orders fell at the quickest pace in the survey’s history. As a result of greater output, firms took on more workers in July, although the rate of hiring remained subdued overall. Companies also increased input buying, a sign that they expect healthy economic conditions to continue. On the price front, input costs rose last month, due largely to higher staff and purchasing costs.
Author: Oliver Reynolds, Economist