UAE July non-oil business growth rebounds from 22-month low

Business activity growth in the United Arab Emirates’ non-oil private sector rebounded in July from a 22-month low in June, a corporate survey showed on Tuesday.

The seasonally adjusted Emirates NBD UAE Purchasing Managers’ Index, which covers manufacturing and services, rose to 55.8 points last month from 54.7 in June. A level above 50 indicates expansion and below 50, contraction.

“July’s PMI is another indication that growth in the UAE’s non-oil economy is proving resilient in the face of a challenging regional and global economic environment,” said Jean-Paul Pigat, senior economist at Emirates NBD.

“The rebounds in output and new orders were particularly encouraging, and we expect this momentum to continue through the remainder of 2015.”

The output subindex rose sharply to 60.0 points in July from 57.5 in June, while the new orders subindex climbed to 60.2 from 57.7. Employment continued to grow at the same moderate pace.

Output prices fell last month, with the subindex at 49.5 points, but the input price subindex rose sharply to 53.4 from 50.9, although it remained moderate compared to last year’s levels.