UAE’s non-oil business growth hits 3-month high in July

The United Arab Emirates’ non-oil private sector reached a three-month high, according to a survey released on Thursday.

The seasonally adjusted Emirates NBD UAE Purchasing Managers’ Index climbed to 56 in July, in comparison to 55.8 in June.

A reading of above 50 indicates expansion, while below 50 points to contraction.

“The PMI survey in July showed that domestic demand remained robust, offsetting weakness in external demand last month,” Khatija Haque, head of MENA Research at Emirates NBD, said in a statement.

“Firms were more optimistic about the coming year, and increased inventories at a record rate, partly in anticipation of further order growth,” she added.

Output increased at a faster pace driven by “favorable economic conditions” and new projects.

Firms increased payroll numbers, leading to a marginal rise in employment.

New orders rose at a sharp rate, however, the growth was slightly slower when compared to the previous month.

Meanwhile, new export work fell for the second consecutive month, with the respective index falling to a record low.

Overall, companies expressed optimistic projections for output over the next 12 months, with confidence rooted in orders in the pipelines and forecasts of further improvements in demand conditions, the report said.