Business activity growth in the United Arab Emirates’ non-oil private sector cooled in November from October’s record high as new orders and output slowed sharply, a survey showed on Thursday.
The HSBC UAE Purchasing Managers’ Index, which measures the performance of the manufacturing and services sectors, fell to 58.3 points in November from 61.2 in October, which was the highest level since the series began in August 2009.
The adjusted index remains above the 50 mark which separates growth from contraction, the survey of 400 private firms showed.
“The PMI is showing a little softness, suggesting weaker oil prices and poor global demand are starting to weigh,” HSBC’s chief economist for the Middle East & North Africa Simon Williams said.
“But the score is down only from its very high base and remains firmly in expansionary territory. We remain upbeat on near term growth prospects in both Dubai and Abu Dhabi.”
UAE firms saw output growth decelerate to 62.8 points from an all-time high of 66.1 points in October. New orders growth fell to 65.5 points in November from 69.9 points in the previous month, also the highest level on record.
But growth in new export orders rebounded to 60.1 points in November from a nine-month low of 57.4 points in October, the survey showed.
Job creation across the UAE’s non-oil private sector slowed sharply, to 53.3 points from 56.1 in October. Output price growth decelerated to 51.2 points from 52.8 points in October.