Mubasher: The non-oil private sector’s upward growth gained steam in June, following May’s weakest improvement in six months, supported by sharper rises in both new orders and output, according to a survey sponsored by Emirates NBD and produced by IHS Markit.
The ongoing upturns in output and new order book volumes encouraged companies to engage in input buying, leading to further increases in inventories.
However, employment stagnated, while new export orders declined for the first time in seven months as demand from international markets reduced.
Business confidence towards the twelve-month outlook eased to the second-lowest level in the survey history.
June saw a renewed increase in input costs. In spite of increased cost pressures, firms continued to offer discounts amid reports of intense competition.
“The rise in output and new orders in June is encouraging, although we note that firms continued to reduce selling prices on average in order to support demand and order growth,” according to Khatija Haque, head of MENA Research at Emirates NBD.
“The survey also highlights the lack of employment growth despite the strong increase in new work last month. Overall however, the PMI data for the first half in 2017 supports our view that the non-oil sectors have grown at a faster pace relative to H1-16,” Haque added.
