Dubai - Mubasher: The UAE’s non-oil sector saw a sluggish growth at the end of the first quarter of 2018, reaching its lowest level in ten months; however, the sector’s expansion remains above the average rate.
Also, the growth of output and employment slowed down in March 2018, according to a survey conducted by IHS Markit and sponsored by Emirates NBD Bank released on Tuesday.
“Although the UAE’s PMI score continues to moderate from the pre-VAT boost enjoyed at the end of 2017, it remains firmly in expansionary territory, and continued discounting by firms should help stimulate demand,” MENA Economist at Emirates NBD, Daniel Richards commented.
Headline Emirates NBD UAE Purchasing Managers’ Index (PMI) – an indicator of the operating conditions in the non-oil private sector– went down to 54.8 points in March from 55.1 a month earlier.
Output growth tumbled to a 23-month low at the end of March, while job creation – reported in the same month by private companies in the non-oil sector – levelled down to its lowest level in 17 months, the survey found.
“Firms are more positive towards future output than they were last month, reflecting new orders that remain strong at 60.2,” Richards said.
The confidence in the Emirati non-oil sector has been improved, given the recently unveiled projects and the positive expectations regarding the performance of the global economy.
