Dubai: Non-oil business activity in the United Arab Emirates increased in July, underpinned by new orders from abroad, a sign that the UAE economy remains in good health even as other emerging markets wobble, HSBC said on Monday.
The bank’s purchasing managers index, or PMI, inched up to 54.5 in July, from 54.1 in June. A reading above the neutral 50 level indicates the economy is expanding.
HSBC said the July data signalled further rises in output levels and new order intakes at non-oil producing private sector companies in the UAE.
Meanwhile, new business from abroad rose at the sharpest rate since January and employment levels increased further, albeit at the slowest pace in eight months.
“It’s another positive set of readings that shows the UAE maintaining momentum even as other more high profile emerging markets lose steam.
“Despite strong demand, inflationary pressures appear subdued and wages, though rising, are gaining only slowly,” said Simon Williams, chief economist for Middle East & North Africa at HSBC.
HSBC’s PMI index, the first of its kind to be published in the Gulf, was compiled with data provider Markit and based on data compiled from monthly replies to questionnaires sent to purchasing executives in approximately 400 private sector companies.
