Dubai – Mubasher: The UAE’s non-oil private sector saw all-time high in 34 months in December 2017, encouraged by sharp expansions in production, new orders and robust growth of exports, Emirates NBD's purchase managers' index (PMI) showed on Thursday.
As for inflation, input cost declined in December, while their selling prices decreased for the fourth month in a row, according to the report, sponsored by Emirates NBD and produced by IHS Markit.
The UAE’s non-oil private sector increased to 57.7 points in December compared to 57 in November, which is the highest rate since February 2015, the report added.
“The UAE’s non-oil sector expanded sharply in the last two months of the year, largely due to a strong rise in output and new orders. It is likely that the introduction of VAT in January has spurred activity and purchasing in Q4 2017, which is in line with our expectations. Nevertheless, employment and wage growth has been relatively muted, not just in December but for 2017 as a whole,” said Khatija Haque, head of MENA Research at Emirates NBD.
The UAE’s non-oil private sector firms reported steep growth in output during the latest survey period.
The pace of expansion remained robust in the context of historical data, despite easing since from the 33-month high seen in November, the report added.
New export orders returned to expansion during the latest survey period.
Moreover, export growth was the strongest recorded in nine months, owing to the hike of demand from neighboring GCC countries in December.
Material prices rose in December, while inflation dropped to its lowest rate in three months.
