ZCZC
BCN-31
UAE-NON OIL-PRIVATE-SECTOR
UAE non-oil private sector sees slowest growth in 3 months
DUBAI, Aug. 13, 2018 (BSS/Xinhua) – The Purchasing Managers’ Index (PMI)
of the United Arab Emirates (UAE) declined to 55.8 in July from June’s 57.1,
signalling the slowest growth in the non-oil private sector in three months,
UAE’s second largest bank Emirates NBD said Sunday.
A PMI above 50 indicates an expanding business environment while a figure
below 50 means a contraction.
Despite the fact that the input cost inflation remained relatively modest
in July, “firms continued to lower average selling prices, causing output
prices to decline for the third month in a row,” Emirates NBD said in an e-
mailed statement.
According to the statement, promotional activity and intense competitive
pressures across the UAE’s non-oil private sector led firms to reduce their
selling prices for the third consecutive month.
Earlier reports by Emirates NBD indicated the introduction of a 5-percent
value-added tax in the UAE in January, a first in the 46-year history of the
Gulf state, as one of the triggers for the more challenging economic
environment.
However, optimism remained strong overall, marking the fourth highest in
last six years, said the UAE bank.
There was reason for being optimistic as “new orders from abroad increased
at the sharpest pace in three years during July,” it noted.
In addition, the UAE government slashed a number of fees by up to 60
percent for private businesses, hotels and restaurants in June, in order to
stimulate growth in the non-oil private sector.
BSS/XINHUA/HR/1215