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UAE private sector continues growth in June with employment edging up

posted on 10/07/2016: 2099 views

Business activity in the UAE's non-oil private sector grew more slowly in June but remained robust, according to a survey published on Sunday.

The seasonally adjusted Emirates NBD UAE Purchasing Managers' Index, which covers manufacturing and services, dropped to 53.4 last month from 54.0 in May. A figure above 50 means business is expanding; below 50 signals contraction.

"The softening in new business and output growth in June may partly be due to the earlier start to Ramadan this year," said Khatija Haque, head of regional research at Emirates NBD, referring to the Muslim holy month.

"Nevertheless, the output index remains relatively high and we continue to expect solid non-oil growth in the UAE this year."

Output growth fell to 58.9 in June from 59.9 in May, while growth in new orders dropped to 54.8 from 55.8. Employment growth accelerated marginally.

Output prices fell for an eighth straight month though the pace of decline slowed, while input price inflation accelerated to a nine-month high. – The National -


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