Dubai – Mubasher: Growth of the UAE’s non-oil private sector slowed in September, with business conditions improving at the weakest pace in four months, according to a survey sponsored by Emirates NB.
The headline seasonally adjusted Emirates NBD UAE Purchasing Managers’ Index (PMI) fell closer to the 50.0 no-change mark for the second month running in September.
“Down from 54.7 in August, the latest reading of 54.1 was still consistent with a solid improvement in business conditions,” the survey highlighted.
“The sharp slowdown in new order growth last month appears to be due to weaker demand from external markets rather than soft domestic demand. Growth in output and purchasing activity remained strong,” according to Khatija Haque, Head of MENA Research at Emirates NBD.
“Overall, the PMI data points to a faster rate of expansion in the UAE’s non-oil private sector in Q3-16, compared to Q2,” Haque added.
Output continued to grow sharply, whereas growth of new business eased substantially. The amount of new business from abroad fell for the third straight month, and at a survey-record pace.
Purchasing activity rose more quickly in September, despite the slowdown in growth of total new work.
Hiring was comparatively modest at the end of the third quarter, continuing the trend seen throughout much of 2016 to date.
Total input costs declined for the first time in a year-and-a-half thanks to only the third fall in purchase prices since the series began in August 2009. Charges also dropped, extending the current downward sequence to 11 months.
