UAE private sector growth hits 10-month high in July

Business activity in the UAE’s non-oil private sector grew at its fastest pace in 10 months in July, buoyed by sharp rises in both output and new orders, a survey of businesses showed on Wednesday.

The seasonally adjusted Emirates NBD UAE Purchasing Managers’ Index, which covers manufacturing and services, rose to 55.3 last month from 53.4 in June. A figure above 50 means business is expanding, while below 50 signals a contraction.

“July’s survey suggests the UAE’s non-oil private sector economy started off the second half of 2016 on a strong footing,” said Jean-Paul Pigat, senior economist at Emirates NBD.

“It is encouraging that despite relatively weak exports, economic momentum is being supported by stronger domestic demand conditions.”

Output growth jumped to 62.1 in July from 58.9 in June, while growth in new orders accelerated to 57.5 from 54.8. Employment growth also rose, to 52.9.

Output prices fell for the ninth straight month in July, with the pace of their decline accelerating, while input price inflation was positive but slowed marginally.

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