UAE non-oil business growth falls slightly in September

Business activity growth in the United Arab Emirates’ non-oil private sector slowed slightly in September, a corporate survey showed on Wednesday.

The seasonally adjusted Emirates NBD UAE Purchasing Managers’ Index, covering manufacturing and services, fell to 54.1 last month from 54.7 in August. The 50-point level divides expansion from contraction.

“The sharp slowdown in new order growth last month appears to be due to weaker demand from external markets rather than soft domestic demand,” said Khatija Haque, head of regional research at Emirates NBD.

“Growth in output and purchasing activity remained strong. Overall, the PMI data points to a faster rate of expansion in the UAE’s non-oil private sector in the third quarter of 2016, compared to the second quarter.”

Growth in output slowed slightly, with the related index slipping to 61.2 in September from 61.4 in August, while new order growth tumbled – the related index slumping to 53.0 from 57.0. Employment growth accelerated slightly, however.

Output prices fell outright in September for the 11th straight month, with the pace of deflation increasing, while input price inflation turned negative.

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