UAE’s non-oil business growth sinks to 4-year low in December

The United Arab Emirates (UAE) Purchasing Managers’ Index (PMI) fell to 53.3 in December 2015– its lowest level in four years– on slower growth in the non-oil private sector, the latest research from Emirates NBD showed.

The PMI, however, was above the neutral 50 level that separates expansion from contraction, the report added.

The average PMI for the last quarter of 2015 was 53.9, lower than the average of 59.3 in Q4-2014, and the average PMI for Q3-2015, “indicating that growth momentum slowed in the final quarter of last year,” according to Khatija Haque, head of MENA Research at Emirates NBD.

“The main reason for slower expansion in December was softer growth in new orders, with this component of the PMI easing to 55.7 in December from 57.5 in November, the lowest level since August 2011,” Haque added in the report.

Growth in export orders fell to 53.4 in December compared to 56.1 the previous month. “The output index was relatively robust at 57.2 but even this was lower than November’s reading.”

Job growth rate, which picked up in November, slowed again in December.

The data indicated weaker domestic and external demand in the fourth quarter of 2015. However, the slower non-oil growth in the UAE last year was at least partially offset by increased hydrocarbon growth.