UAE non-oil sector output expands in August

06 September 2015

Index rises to six-month high on account of sharper increase in output and new orders

  • Composite index rises 1.3 points from July
  • New orders rise despite slower export growth

The UAE’s non-oil private sector continued to expand in August, with the Purchasing Managers Index (PMI) tracked by Emirates NBD rising to 57.1 from 55.8 reported in July.

The index growth resulted from sharper expansions in output and new order following softer performances in June and July due to Ramadan.

Apart from new orders and output, the composite index measures three other individual indexes namely employment, suppliers’ delivery times, and stock of items purchased in order to provide an accurate overview of the operating conditions in the UAE’s non-oil private sector.

New orders improved despite slowdown in export growth, which Emirates NBD attributes to currency appreciation relative to other emerging markets.

New orders resulted in greater pressure on capacity triggering th strongest growth in backlogs since the survey began in 2009, the report stated. Growth in output was mainly attributed to promotional activities and general improvement in market conditions.

Employment increased in line with stronger business requirements although the rate of job creation in August was below the average registered in 2015.

The UAE PMI is based on monthly data gathered from purchasing executives of some 400 private sector companies operating across the UAE’s manufacturing, services, construction and retail sectors.






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