Mubasher: The Purchasing Managers’ Index (PMI) of the UAE registered a rise to 57.0 in November, up from 55.9 in October, according to a recent report by Emirates NBD.
November’s PMI recorded a strong improvement for the UAE’s non-oil private sector, hitting the sharpest pace of expansion since August.
The UAE’s output continued to grow during November, thereby extending the current sequence of growth that began in February 2010.
Moreover, the rate of expansion registered the strongest level in 33 months, the report added.
Business conditions in the UAE’s non-oil sector witnessed steep growth in both output and new business contributed to the latest improvement in the field.
Non-oil private corporates responded to higher output requirements by enlarging buying activity at the fastest pace in the PMI survey’s history.
“Many respondents reported that they anticipate operating conditions to further improve in the next 12 months,” the Emirates NBD’s survey added.
In terms of inflation, average cost burdens increased at a solid pace, reflecting higher raw material prices across the UAE.
“The PMI reading for November confirms our view that the UAE’s non-oil sector will likely see strong growth in the fourth quarter of this year, as both households and business will likely boost purchases before VAT comes into effect at the start of next year,” the head of MENA Research at Emirates NBD, Khatija Haque, commented on the UAE PMI survey.
Haque added: “The continued softness in employment and lack of wage growth suggests that any boost to household consumption this quarter will likely prove temporary.”
The PMI is a composite indicator that gives an accurate overview of operating conditions in the non-oil private sector economy in the country.
