UAE’s private sector growth scales new heights

The country’s Purchasing Managers’ Index is slated to continue its trend through the fourth sector this year.

As per the results of a survey of companies in the UAE in November, the growth of non-oil private sector in the country has accelerated sharply in output.

The seasonally adjusted Emirates NBD UAE Purchasing Managers’ Index, which covers the manufacturing and services sector, rose to 57.0 from 55.9 in October. A figure above 50 indicates expansion while a figure below 50 shows a contraction.

According to Khatija Haque, the head of Emirates NBD, the November data confirms that the pace of growth is likely to continue in the fourth quarter as well, with households and businesses continuing to buy goods.

A 5% value added tax is set to be introduced in January.

“However, the continued softness in employment and lack of wage growth suggests that any boost to household consumption this quarter will likely prove temporary,” said Haque.

In November, UAE’s output growth has accelerated to 64.3, its highest level since February 2015, from 60.5 in October; growth in new orders has risen to 60.2 from 59.9.

Employment growth in UAE has however slipped to 50.9 from 51.3.

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Categories: Creativity, Economy & Finance, Entrepreneurship, HR & Organization, Regulations & Legal, Strategy, Sustainability

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