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UAE’s non-oil sector records marked business improvement

DUBAI, December 17, 2014

The UAE’s non-oil private sector economy has continued to record a marked improvement in business conditions mid-way through the final quarter of the year, according to SABB/HSBC survey data.

The SABB/HSBC Emerging Markets Index (EMI), a monthly indicator derived from the PMI surveys, pointed out that the overall strength of the current upturn lost some momentum from October’s survey-record pace, but has remained substantial.

The growth of Saudi Arabia’s non-oil private sector economy was sustained during November, but at a slower pace as output, new orders and employment have all increased but at a weaker rate.

Egypt’s non-oil private sector companies reported further growth of output and new orders in November, but the rates of expansion slowed and were marginal.

The employment levels also increased fractionally and companies were able to further reduce their backlogs. Firms lowered their selling prices for the first time in five months and input costs rose at one of the slowest rates in the survey’s history.

Meanwhile, the output growth in global emerging markets slowed further in November, according to the data.

It slipped for the second month running to 51.2, signalling the weakest rate of expansion since May. The EMI remained well below its long-run trend level of 53.7, and this year looks set to record the lowest annual average for the Index since its inception in November 2005.

The manufacturers and service providers in emerging markets both registered slower, identical rates of output expansion in November.

The data for the four largest emerging economies showed contrasting activity trends in November. China registered growth for the seventh month running, but at the weakest rate since May.

India posted the fastest growth since June, while Russia and Brazil both registered sharper rates of decline.

On a brighter note, the index recorded new business growth picking up from October’s five-month low, with both manufacturing and services showing faster rates of expansion.

Inflationary pressures remained subdued in November. Input price inflation edged up to a three-month high, but remained historically weak. Output prices rose following October’s decline, but at only a marginal rate. - TradeArabia News Service




Tags: UAE | economy | Private | non-oil | sector |

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