Business drops to 3 -month low in UAE

The HSBC UAE Purchasing Managers’ Index (PMI), which measures the performance of the OPEC member’s manufacturing and services sectors, says that UAE witnessed a three-month business low in June as input cost pressures remained high. The index dropped to 55.2 in June, lowest reading for three months. “The headline number has softened for a second consecutive month, suggesting that the lift UAE received from unrest elsewhere may be fading,” said Simon Williams, chief economist for Middle East & North Africa at HSBC. An accumulation of unfinished business was observed in June as new workloads increased. In order to adjust the current and expected growth of new work, the non-oil private sector companies raised buying activity in the country along with building up input stocks. Job creation in the country remained the lowest since November last year.