Dubai - Mubasher: The UAE’s non-oil private sector activity marked a three-month low in July on the back of slower output and work orders, leading to lower business confidence, according to a recent survey sponsored by Emirates NBD and produced by IHS Markit.
The headline seasonally adjusted Emirates NBD UAE Purchasing Managers’ Index (PMI), an indicator of the operative condition of the UAE non-oil private sector, declined to 55.8 points in July, compared to 57.1 in June.
The expansion in the Emirati non-oil private sector was carried out in a rapid pace last month, residing above the “historical average”, according to the survey.
Meanwhile, the demand for goods and services soar, despite the sluggish growth of output, the survey found.
“Notably, new export orders increased at the sharpest rate in three years, as firms reported stronger demand from other GCC countries and Europe. Employment was broadly unchanged in July, with the index barely above the neutral level at 50.2,” head of MENA Research at Emirates NBD Khatija Haque commented.
“Backlogs of work increased sharply again as a result of the strong rise in new orders (and flat employment), although the rate of increase in backlogs was softer than in June,” Haque added.
At odds with an inflated amount of outstanding work, job creation eased in July, marking a two-year low growth. Pricewise, input costs recorded minor inflation, while purchase price inched up in the seventh months of 2018, the survey said.
Business confidence did not undergo a boost last month, but the optimistic sentiment is still high, reflecting a positive outlook of the UAE economy.