Dubai: Momentum seems to have slipped further in the UAE’s non-oil private sector during October – so much so that business conditions showed the least improvement in six months.
Staffing levels remain “near stagnation”, according to an economy tracker.
“A relatively subdued rise in new work was a key factor behind the overall slowdown, as was a near-stagnation in employment,” based on the Emirates NBD PMI (purchasing managers index) tracker. It is the third straight month that growth in private sector is showing up in negative territory.
The seasonally adjusted PMI had a reading of 53.3 and the lowest since April. It was down from 54.1 in September and below the long-run series average (54.5).
“Export orders declined for the fourth consecutive month, contributing to a slowdown in total new orders growth since the summer,” said Khatija Haque, Head of MENA Research at Emirates NBD. “Overall, growth momentum appears to have eased at the start of Q4 after a relatively strong Q3.”
But, according to the official, “the data still points to solid expansion in the UAE’s non-oil private sector in October. Output growth remains very strong.”
Even as output continues to increase, it is the rate of expansion that is slowing. A combination of subdued demand and ongoing competitive pressures led firms to cut their charges for the 12h straight month. Purchase costs increased following September’s decline, but modestly.
The survey, sponsored by Emirates NBD and produced by IHS Markit, contains data collected from a monthly survey of business conditions in the UAE non-oil private sector.
