Non-oil business activity in the UAE cooled a touch during December as the pace of new export orders slowed, but the underlying economy remains in robust shape, HSBC said today.
The bank’s purchasing managers index, or PMI, fell to 57.4 in December, from an all-time record of 58.1 in November. A reading above the neutral 50 level indicates the economy is expanding.
HSBC said new orders rose solidly in December, with 41 per cent of panel members indicating growth. The pace of expansion eased slightly from November’s record high, but was still the second-quickest in the series history, it added.
“Meanwhile, new export orders rose at the slowest pace in four survey periods,” HSBC said.
Cost pressures persisted into December, with 12 per cent of panellists reporting higher input prices. While purchase prices rose at the fastest pace in more than a year, wage inflation was unchanged since November, said HSBC.
Some economists have noted that price pressures are starting to build in the UAE. Given the backdrop of rising rents in both Dubai and Abu Dhabi, inflation could become a growing policy concern over the course of this year.
business@thenational.ae
