United Arab Emirates: PMI weakens in July, registering lowest reading since February
August 5, 2019
The IHS Markit Purchasing Managers’ Index (PMI) fell from 57.7 in June to 55.1 in July. However, the index remained above the 50-point threshold that separates expansion from contraction in the non-oil producing private sector.
July’s dip was due to slower, albeit still robust, output and new orders growth. While demand conditions were solid in July, they were stoked in part by price discounting. Increased demand led businesses to raise inventory levels and purchasing activity. However, employment growth was only modest in July as a majority of firms kept staffing levels unchanged. Business optimism was relatively stable and likely continued to be supported by improved market conditions and the upcoming Expo 2020. On the price front, output prices moderated while input prices were steady.
Author: Steven Burke, Economist