United Arab Emirates Non-Oil Private Sector PMI2011-2020 Data | 2021-2022 Forecast

The IHS Markit United Arab Emirates PMI was down to 49.3 in January 2020, the first contraction since the survey began, from 50.2 in the previous month. New orders fell for the second time in three months, amid a slow business environment, in particular within the domestic economy, while output failed to grow for the first time in ten years. In addition, workforce numbers dropped at one of the strongest rates on record, mainly due to cost-cutting strategies. With capacity dwindling, backlogs of work continued to pile up, although this was often attributed to credit issues. Meanwhile, new orders from abroad grew for the third month in a row and at a faster rate, and input purchases rose further. On the price front, input cost rose for the fifth month in a row amid increased wages, while purchase prices were broadly unchanged. Selling prices, meantime, fell further due to strong competition. Lastly, confidence weakened slightly, though it held strong overall.

The IHS Markit United Arab Emirates PMI edged down to 50.2 in December 2019 from 50.3 in November. This was the weakest reading since the decade-long sequence of growth, with output rising the least since September 2011. In addition, new orders grew marginally, linked to soft demand both at home and abroad. The expansion in new business was the weakest seen in the series history. Also, employment remained subdued. Meanwhile, purchasing activity rose for the first time in three months, though the overall increase was only modest. On the price front, input cost inflation was relatively mild, with some respondents noting higher raw material and fuel prices but little change to staff costs. Selling charges were again lowered, as has been the case in each month since October 2018, on the back of strong competitive pressures in the sector that led firms to offer discounts. Finally, sentiment were firmly positive, with the Expo 2020 proving a key source of optimism.

The IHS Markit United Arab Emirates PMI fell to 50.3 in November 2019, the lowest since August 2009, from 51.1 in the previous month. Output expanded the least since September 2011, new business shrank for the first time in the series history and purchasing activity contracted further. At the same time, employment dropped at a fractional pace; while backlogs were affected by liquidity issues, rising at the quickest pace since June. Meantime, export sales returned to growth, as international markets reportedly fared better than the domestic one. On the price front, input cost inflation accelerated from October, though the rate was relatively subdued, while selling prices dropped for the 14th straight month, but the rate of falling softened for the first time since July. Finally, confidence improved to a four-month high, boosted by Expo 2020 event.

The IHS Markit United Arab Emirates PMI was at 51.1 in October 2019, unchanged from September's near 9-1/2-low. New business growth slipped to a new record low, with foreign sales declining for the first time in 19 months. At the same time, output levels grew at a relatively subdued pace, with businesses also restraining purchasing activity. Meantime, employment rose for the second consecutive month, but the rate remained marginal, with outstanding business rose slightly amid issues with payments at a number of firms. In terms of prices, input prices rose for the second month running, although the pace of inflation was marginal and softer than in September. Meanwhile, selling charges decline at steepest rate in series history. Finally, sentiment improved, due to new strategies and greater investment ahead of the Expo 2020.