Growth of business activity in the United Arab Emirates’ non-oil private sector accelerated slightly in July, a purchasing managers’ survey showed on Monday.
The HSBC UAE Purchasing Managers’ Index, which measures the performance of the manufacturing and services sectors, rose to a seasonally adjusted 54.5 points in July from 54.1 points in June, the survey of 400 private sector firms showed. It remained above the 50-point mark which separates growth from contraction.
“It’s another positive set of readings that shows the UAE maintaining momentum even as other more high-profile emerging markets lose steam,” said Simon Williams, chief economist for the Middle East at HSBC.
“Despite strong demand, inflationary pressures appear subdued and wages, though rising, are gaining only slowly.”
The sub-index for new orders rose sharply, to 61.0 points in July from 58.1 in June. New export orders shot up by over 5 points. However, employment growth slowed, to 51.6 points from 54.0.
Input price inflation accelerated slightly while output price inflation eased.