Tuesday, Apr 03, 2012
DUBAI (Zawya Dow Jones)--Non-oil private sector business activity in the United Arab Emirates was little changed in March, compared with the month before, indicating the country's economy continues to expand only modestly amid a darkening global backdrop, a report from HSBC Holdings PLC (HBC) showed Tuesday.
HSBC said its purchasing managers index, or PMI, edged up slightly to 52.3 in March, from 52.0 in February. A reading above the neutral 50 level indicates the economy is expanding.
"Although the score continues to suggest that the economy is expanding there is little in the data to indicate that the UAE is gaining momentum. Output picked up a little in March, but new orders lost speed, held back by decelerating export orders," HSBC said.
New work received by U.A.E. non-oil private sector companies in March increased at a strong pace that was above trend, but new export orders were the weakest in there months, HSBC said.
HSBC's 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 bank said the U.A.E.'s lackluster performance in March is underscored when the PMI readings are set against Saudi Arabia where a much more expansionary fiscal stance and a rapidly recovering banking sector are generating more robust domestic demand.
HSBC said its Saudi PMI came in at 58.7 for March, down from 59.6 in February.
-By Tim Falconer, Dow Jones Newswires; +9714 446-1690; tim.falconer@dowjones.com
Copyright (c) 2012 Dow Jones & Co.
(END) Dow Jones Newswires
03-04-12 0708GMT
