UAE Non-oil Private Sector and Manufacturing Sector Increased In November

The advancement of the non-oil sector in the United Arab Emirates increased in November following the sharp increase in the output from the survey of the companies on Tuesday.

The seasonally adjusted Purchasing Managers’ Index of the National Bank of Dubai involving the manufacturing and services grew by 57.0 percent in the previous month compared to 55.9 in October. If it is greater than 50, it is indicative of a growth while if it is lower than anticipated, this means a contraction.  

The head of regional research at Emirates NBD, Khatija Haque,  said that the fourth quarter will most likely be strong since companies and households purchase more goods prior to the beginning of the 5 percent value-added tax in January.Yet, she also mentioned that the subdued employment growth and lesser wage growth suggests it to be a short-term expansion.

The output growth increased by 64.3 in November which is a record-high since February 2015 from 60.5 two months ago. However, the employment growth declined to 50.9 from 51.3. Output prices dropped for a third consecutive month in November while the inflation of input price slightly augmented.