United Arab Emirates: PMI picks up in May
June 5, 2016
The Emirates NDB Purchasing Managers’ Index (PMI) rose in May to 54.0 in from 52.8 in April. The increase puts the index further above the 50 threshold that separates expansion from contraction in the non-oil producing private sector.
May’s reading was the second-highest figure in six months and demonstrated an improvement in the overall health of the sector. New orders growth picked up in May, but was still below its long term average and contributed to gains in new work. Output also increased; however the purchasing activity of firms had slowed substantially indicating that stock levels were seen as adequately sufficient. Emirates NBD analysts added that, “the improvement in the UAE PMI was mainly due to strong growth in output last month, with new business picking up as well. This confirms our view that the non-oil sector of the UAE is continuing to expand, albeit at a slower rate than last year.”
Author: Robert Hill, Economist