UAE non-oil business growth slows marginally in May – PMI

Output growth rose to a three-month high index reading of 62.8 points in May but the increase in new orders fell.



Business activity growth in the United Arab Emirates’ non-oil private sector slowed marginally in May because new orders expanded less rapidly, a corporate survey showed on Wednesday.

The seasonally adjusted HSBC UAE Purchasing Managers’ Index, which covers manufacturing and services, edged down to 56.4 points last month from 56.8 points in April. The 50-point level separates growth from contraction in the survey of 400 firms.

“The UAE’s non-oil private sector continued on its robust growth trend during May,” said Philip Leake, economist at data compiler Markit.

“With employment also rising solidly, the PMI looks set to remain comfortably inside growth territory over the coming months.”

Output growth rose to a three-month high index reading of 62.8 points in May from 62.0 points in April, but the increase in new orders fell to 60.9 points from 62.1 points. Employment growth accelerated slightly.

Output prices fell for a fourth straight month, with the index at 49.7 points, while input price inflation eased to 51.6 points from 52.3 points.