As per the results of a survey unveiled on Thursday, growth in the United Arab Emirates’ non-oil private sector slumped to its 10-year low in November.
The seasonally adjusted IHS Markit UAE Purchasing Managers’ Index (PMI), which includes manufacturing and services, fell to 50.3 from 51.1 in October.
The non-oil sector however has remained in growth territory, in what is said to be the UAE’s weakest growth rate since August 2009.
As per the results of the survey data, there has been a month-on-month decline in new business at UAE non-oil companies in the series history; the overall reduction though was marginal.
“Anecdotal evidence commonly linked the decline to subdued market conditions and weaker customer demand,” said David Owen, the author of the report who is an economist at IHS Markit.
Employment levels have also fallen marginally in November, following positive but weak growth in September, indicating the fastest reduction in workforce numbers in UAE non-oil businesses for nine months.
“With cost pressures remaining subdued, firms continued to lower selling prices in November. The latest reduction was sharp and extended the current sequence to 14 months,” opined Owen. “As has been the case recently, respondents highlighted that strong competition forced them to offer discounts. That said, the rate at which charges fell softened for the first time since July”.
Despite the slowdown in growth rates, companies were optimistic for the remaining months of this year, showed the survey, since they a rise in oil production in the coming 12 months.