UAE non-oil private industry maintain growth momentum

DUBAI / WAM

Growth momentum in the UAE’s private sector non-oil activity continued to strengthen in December 2016, driven by improving economic conditions, according to Emirates NBD. Output rose at the “sharpest” pace to a 16-month high on back of new orders backed by growth of new export businesses, the bank’s latest purchasing managers’ index (PMI) revealed on Wednesday. On the price front, a further rise in input costs was registered but competitive pressures and promotional offers lead to decline in output prices, it said. The survey, sponsored by Emirates NBD and produced by IHS Markit, contains original data collected from a monthly survey of business conditions in the UAE non-oil private sector.
“The Emirates NBD PMI indicates a solid expansion in the non-oil private sector in Q4 2016. Strong gains in output and new orders have been hard-won however, with firms continuing to offer discounts and promotions in order to secure orders. Overall, the PMI averaged 53.9 in 2016, well below the 2015 average of 56.0, reflecting slower growth this year,” said Khatija Haque, head of MENA research at Emirates NBD, in a press release. The PMI rose to 55.0 in December from 54.2 in November, signalling a marked monthly improvement in the health of the non-oil private sector and “one that was the strongest since July”.
Higher new orders, improving economic conditions and marketing activities all contributed to output growth. Activity rose substantially over the month and to the greatest extent since August 2015.