DUBAI - Business growth in the United Arab Emirates’ non-oil private sector fell to a six-month low in May as output growth slowed, a survey of companies showed on Monday.
The seasonally adjusted Emirates NBD UAE Purchasing Managers’ Index, which covers manufacturing and services, slipped to 54.3 last month from 56.1 in April. Above 50 indicates expansion; below that shows contraction.
“The decline in the headline PMI reading in May comes off very high readings from February through March,” said Khatija Haque, head of regional research at Emirates NBD.
“The data still show a solid expansion in output and domestic demand in May, although external demand appears to have softened.”
Output growth fell to 57.4 in May from 63.7 in April. Growth in new orders dropped to 57.5 from 58.0. Employment growth slowed to 50.7.
Output prices fell outright last month for the second straight month. Input prices dropped for the first time in eight months.
Reporting by Andrew Torchia, editing by Larry King