United Arab Emirates: PMI rises in July
August 4, 2015
The Emirates NDB Egypt Purchasing Managers’ Index (PMI) increased in July, rising from June’s almost two-year low of 54.7 to 55.8. As a result, the PMI moved further above the 50-threshold that separates expansion from contraction in the non-oil producing private sector.
July’s figure came on the back of a faster expansion in output and new orders. Exports rose at a notable pace in July and purchasing activity at non-oil private sector firms improved from June’s almost-two-year low. Employment continued to increase, mirroring June’s rate of job creation. Regarding prices, input price inflation rose to a five-month high, however remained moderate in the context of historical data. Analysts added that, “July’s PMI is another indication that growth in the UAE’s non-oil economy is proving resilient in the face of a challenging regional and global economic environment. The rebounds in output and new orders were particularly encouraging, and we expect this momentum to continue through the remainder of 2015.”
Author: Dirina Mançellari, Senior Economist