According to a recent survey published on Monday, the United Arab Emirates’ private sector which is founded on non-oil produces grew in May at its finest speed since October of the year 2014, even though the creation of job was mostly stationary.
In May, the PMI of Emirates NBD UAE which can be altered with the seasons and looks overproduction and facilities and generates an outline of the private sector independent of the oil sector increased from 57.6 (in the previous month) to 59.4.
A 50 above reading indicates growth, whereas a reading of below 50 indicates contraction.
The sub-index output was 69.4 in May, relative to a reading of 65.3 obtained in April. The new orders sub-index increased to 69.5 in May from a reading of 64.6 in April.
The Head of MENA research at the Emirates NBD, KhatijaHaque, claims that even though the increase in the headline PMI implies a greater GDP increase in the non-oil private sector of UAE, the environment still proves to be a challenge for the business.
She says that with job creations and wages standing still, output and new order increase comes on the back of recent export orders and price reduction.
In spite of the employment sub-index falling down to 50.1, non-oil firms still hesitate to employ more workers.
In 2018, the economy of the United Arab Emirates increased by 1.7%, which was slower than predicted, according to the preliminary data of March, even after getting a push from increased oil prices. With the aid of non-oil activity, the central bank states how the economy is foreseen to increase by 3.5% in 2019.