uae nonoil growth eases
Last Updated : GMT 15:16:34
Arab Today, arab today
Arab Today, arab today

UAE non-oil growth eases

Arab Today, arab today

Arab Today, arab today UAE non-oil growth eases

Dubai view
Dubai - Arab Today

The UAE non-oil private sector lost further growth momentum at the start of the fourth quarter with business conditions improving at the least-marked pace in two-and-a-half years, according to a key indicator released on Tuesday.

Along with the UAE, Saudi Arabia and Egypt, two of the region's largest economies, registered continued declines.

For the UAE, underpinning the slowdown were weaker expansions in output and new orders, but the respective rates of increase were nevertheless robust overall. Employment rose only modestly, as did stocks of purchases. On the price front, total input costs continued to increase solidly, while charges rose only marginally amid reports of competitive pressures, according to Emirates NBD, a leading Dubai-based lender.

The Emirates NBD Purchasing Managers' Index for the UAE fell to 54 from 56 in September, the lowest since April 2013, the bank said.

The index for Saudi Arabia dropped for a second month in a row to 55.7 in October, the lowest level since the survey began in 2009, driven by weaker expansion in new business as the slump in oil prices started sapping growth momentum. In Egypt, business conditions also worsened at the quickest pace since February, PMI data showed, as a shortage in power supply and foreign currency continued to undermine output.

Khatija Haque, head of Mena research at Emirates NBD, said the October PMI data for the UAE supports the view that activity in the non-oil private sector of the UAE has slowed this year, with average PMI in the first 10 months of 2015 at 56.5, down from 58.1 in the same period last year. "Although the impact on headline real GDP growth is partially offset by higher oil production, the latest PMI data supports our decision to revise down our 2015 growth forecast for the UAE to four per cent [from 4.3 per cent previously] in September."

In the UAE, output and new business both showed similar trends to the headline index during October. "The rates of growth were the slowest in 24 and 42 months respectively, but remained sharp overall. Stronger market conditions, promotional activities and the opening of new branches were all mentioned as factors behind higher new work, while data signalled that a renewed increase in new export orders also contributed. As a result, panellists were motivated to raise their output further," the bank said.

"Reflective of slower growth of incoming new work, UAE non-oil private sector firms were more cautious with regard to their purchasing in October. Growth of buying activity eased for the second month running, leading to a weaker expansion in stocks of purchases. In fact, the rate of inventory building was the slowest observed since September 2013," Emirates NBD said.

For Saudi Arabia, the biggest Arab economy, the slower growth in private industries in October is "unsurprising in the context of sharply lower oil revenues and tighter liquidity conditions," Haque wrote. "However, the rate of expansion in the non-oil sector is still relatively robust." The Saudi government is already searching for budget savings, is contemplating project delays and has sold bonds for the first time since 2007. The country relies on oil for at least 80 per cent of its revenue. While rates of growth in output, new orders and employment all eased, "the sector remained firmly in expansion territory overall".

The bank said data for prices signalled a moderation in cost pressures faced by UAE non-oil private sector companies.

Source: Khaleej Times

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

uae nonoil growth eases uae nonoil growth eases

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

uae nonoil growth eases uae nonoil growth eases

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Japanese regulators raid Airbnb

GMT 00:44 2017 Monday ,20 November

Japanese regulators raid Airbnb
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today Saudi, Bahrain target Iran

GMT 00:48 2017 Monday ,20 November

Saudi, Bahrain target Iran
Arab Today, arab today Europe turns on Facebook, Google

GMT 02:26 2017 Monday ,20 November

Europe turns on Facebook, Google
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Driverless, electric future just round

GMT 02:45 2017 Monday ,20 November

Driverless, electric future just round
Arab Today, arab today Tesla unveils its all-electric semi truck

GMT 02:59 2017 Saturday ,18 November

Tesla unveils its all-electric semi truck
Arab Today, arab today Mona Abdel Ghany increased artistic activities

GMT 12:15 2017 Friday ,17 November

Mona Abdel Ghany increased artistic activities
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 12:22 2017 Thursday ,16 November

Hanan Metawe denies apology for “Major Treason”

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 02:28 2017 Saturday ,18 November

Anti-drug operation nets 4 tonnes

GMT 01:34 2017 Friday ,17 November

Banyan Tree Phuket Takes Festive Season

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday