Non-oil private sector growth remains resilient against the steep drop in oil prices, the latest data show.
The seasonally adjusted Emirates NBD UAE purchasing managers’ index, which covers the non-oil economy, fell to 56 in September, down from the six-month high figure in August of 57.1, but still strong enough to indicate rises in output and new orders. Any score above 50 indicates that the economy is expanding.
“The strength of total new order growth is particularly encouraging, given the remarkable weakness in export orders last month, and in our view underlines the strength of domestic demand in the UAE even against a backdrop of low oil prices,” said Khatija Haque, the head of Mena research at Emirates NBD.
The international benchmark Brent crude has plummeted by over 50 per cent to less than US$50 per barrel since reaching $115 in June last year, affecting the rate of economic growth in the UAE.
The UAE is forecasting growth to top 3.5 per cent this year, according to the economy minister. But the IMF is projecting growth of 3 per cent this year, down from 4.6 per cent last year, as the oil slump results in weaker real estate and corporate activities.
The expansion of total new orders was impacted last month by a drop in new exports, the first since May 2010, which some companies attributed to slower foreign orders due to increased competition, the PMI data show.
dalsaadi@thenational.ae
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