UAE non-Oil Business Slows for 3rd Month Running
PMI points to little new work and near stagnation in employment in October
Activity in the UAE’s private sector slowed for the 3rd month in a row in October with new employment levels stagnating, according to a new survey.
The Emirates-NBD-sponsored purchasing managers index (PMI), measuring non-Oil private sector business activity, hit its lowest level for 6 months, falling from 54.1 in September to 53.3 in October, according to the bank.
The PMI showed subdued rises in new work and near stagnation in employment, while on-going competitive pressures led firms to cut their charges for the 12th straight month.
Output continued to rise sharply but at its slowest rate in 4 months.
“Although the headline PMI index declined in October, output growth remains very strong,” said Khatija Haque, Head of MENA research at Emirates NBD.
“However export orders declined for the 4th consecutive month, contributing to a slowdown in total new orders growth since the summer. Overall, growth momentum appears to have eased at the start of Q-4 after a relatively strong Q-3, but the data still points to solid expansion in the UAE’s non-Oil private sector in October.”
Emirates NBD said growth for new business was substantially slower than for output in October and purchasing activity rose at a weaker pace.
There was also little sign of new employment with 98% of the survey panel seeing no change in staffing levels compared to September.
Have a terrific weekend.
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