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UAE private sector growth softens in June: PMI
[DUBAI] Growth of the United Arab Emirates' non-oil private sector softened slightly in June due to a marginal increase in overall input prices, a survey of companies showed on Wednesday.
The seasonally adjusted Emirates NBD UAE Purchasing Managers' Index (PMI), which covers manufacturing and services, fell to 57.7 last month from 59.4 in May. A reading above 50 indicates expansion and below that, contraction.
Output growth fell to 66.8 from 69.4 and decline in new orders was 66.0 against 69.5. Employment, which had dropped in May, rebounded slightly to 50.2.
Khatija Haque, regional economist at Emirates NBD, said the PMI survey indicated that growth in the UAE private sector has accelerated in Q2 2019, noting that the average PMI reading for the second quarter was the highest since Q4 2014.
But she said: "While firms have reported growth in output and new orders, this has come on the back of further price discounting. As a result, there has been no real boost to hiring as businesses remain focused on keeping costs down."
Although the reading for employment rose in June, almost all respondents saw no change to their workforce numbers during the month.