Wednesday, Jul 04, 2012
(This story was originally published Tuesday)
DUBAI (Zawya Dow Jones)--Non-oil private sector business activity in the United Arab Emirates slightly eased to a three-month low in June, after surging to a 11-month high in May, due to slower growth in output, HSBC Holdings PLC (HBC) said Tuesday.
The bank said its purchasing managers index, or PMI, fractionally slowed to 53.2 in June from 53.8 in May. A reading above the neutral 50 level indicates the economy is expanding.
"I'm not troubled by the modest easing in the June PMI reading which points to a non-oil economy still firmly in growth territory. I suspect there are further declines to come, but the positive new orders numbers suggest that the economy is managing to maintain some momentum despite the weak global backdrop and falling energy prices," said Simon Williams, chief economist for Middle East & North Africa at HSBC.
The PMI index, the first of its kind to be published in the Gulf, was compiled with data provider Markit and based on data compiled from monthly replies to questionnaires sent to purchasing executives in approximately 400 private sector companies.
The latest HSBC report also marked a sixth successive monthly rise in employment with the rate of expansion the steepest since last July, as the increase in workloads encouraged companies to take on extra staff during June.
-By Leila Hatoum, Dow Jones Newswires; +971-4-446-1686; email@example.com; Twitter: @ZDJnews
Copyright (c) 2012 Dow Jones & Co.
(END) Dow Jones Newswires