Business activity growth in the United Arab Emirates’ non-oil private sector edged down in July but remained very high by historical standards, a purchasing managers’ survey showed on Tuesday.
The adjusted HSBC UAE Purchasing Managers’ Index, which measures the performance of the manufacturing and services sectors, was at 58 points last month, down from 58.2 points in June.
It stayed close to a peak of 58.3 points hit in April, which was the highest level since the survey was launched in August 2009. A reading above 50 points in the survey of 400 private sector firms indicates expansion and below 50, contraction.
“It’s another very strong number for a UAE economy that’s still in the sweet spot. Prices are stable, growth is good and high readings for new orders show demand still building momentum,” said Simon Williams, chief economist for the Middle East and North Africa at HSBC.
Output growth dropped to 61.6 points in July from 63.3 points in the previous month, while new orders growth fell more moderately. Employment growth slowed slightly but stayed comfortably in positive territory.
Input price inflation edged down to 55 points while output price growth increased slightly but was still negative at 49.5 points.