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The UAE’s non-oil private sector growth picked up momentum in the second quarter of 2019 on the back strong expansion in new orders and business activity, according to Emirates NBD.
The headline seasonally adjusted UAE Purchasing Managers’ Index (PMI) stood at 57.7 in last month, but down from 59.4 in May. However, the average PMI reading for the second quarter was the highest since fourth quarter 2014.
“The recent PMI surveys indicate that growth in the UAE’s private sector has accelerated in Q2 2019,” said Khatija Haque, head of Mena Research at Emirates NBD.
“While firms have reported growth in output and new orders, this has come on the back of further price discounting. As a result, there has been no real boost to hiring as businesses remain focused on keeping costs down,” she added.
Purchasing activity grew at a record pace for the second month running as companies responded to rising new orders. Stocks of purchases also increased, albeit at a reduced pace that was the softest since February. Employment levels broadly remained.
Non-oil companies remained strongly optimistic that business activity will increase over the coming year, supported by Expo 2020, the report.
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