05 February 2017
The non-oil private sector in the United Arab Emirates boosted their payroll numbers again in January, as a response to an upturn in new orders and work during the first month of the year, but companies are still seeing tight margins as they continue to cut costs to stimulate growth, according to a new survey released on Sunday.
The UAE Purchasing Managers’ Index (PMI), which is compiled by Emirates NBD, Dubai’s largest bank, reported a score of 55.3 in January, up slightly from 55.0 in December 2016 and the highest score since July 2016. A figure of less than 50 indicating the market is declining and above 50 forecasting growth.
The rise was due to the fact new orders and business increased at the quickest rate in 16 months. On the jobs front, this means payrolls increased to cater to the increased demand
However, this squeezed margins even tighter as the increased payroll, coupled with rising costs and inflation comes at a time when businesses are still being forced to offer discounts and promotions in order to remain competitive, the report said.
“UAE non-oil private sector businesses remained optimistic towards the 12-month outlook for output at the start of the year. Those firms that were upbeat about the year ahead commented on expectations of further improvements in market conditions and strengthening client demand,” the report concluded. Read the full report here.
Saudi Arabia’s non-oil private sector also reported improvement, with the PMI rising from 55.5 in December to 56.7 at the start of 2017, the strongest rate of improvement for nearly 18 months.
This was due to the fact that new order growth reaches a 14-month high, but businesses kept staffing levels stable.
“The rise in Saudi Arabia’s PMI to the highest level in 17 months is an encouraging start to the year, particularly as it reflects faster output and new order growth in January. Firms also appear to be more optimistic about the coming 12 months,” Khatija Haque, head of Middle East and North Africa research at Emirates NBD, was quoted as saying in a press statement. Read the full report here.
© Express 2017
The non-oil private sector in the United Arab Emirates boosted their payroll numbers again in January, as a response to an upturn in new orders and work during the first month of the year, but companies are still seeing tight margins as they continue to cut costs to stimulate growth, according to a new survey released on Sunday.
The UAE Purchasing Managers’ Index (PMI), which is compiled by Emirates NBD, Dubai’s largest bank, reported a score of 55.3 in January, up slightly from 55.0 in December 2016 and the highest score since July 2016. A figure of less than 50 indicating the market is declining and above 50 forecasting growth.
The rise was due to the fact new orders and business increased at the quickest rate in 16 months. On the jobs front, this means payrolls increased to cater to the increased demand
However, this squeezed margins even tighter as the increased payroll, coupled with rising costs and inflation comes at a time when businesses are still being forced to offer discounts and promotions in order to remain competitive, the report said.
“UAE non-oil private sector businesses remained optimistic towards the 12-month outlook for output at the start of the year. Those firms that were upbeat about the year ahead commented on expectations of further improvements in market conditions and strengthening client demand,” the report concluded. Read the full report here.
Saudi Arabia’s non-oil private sector also reported improvement, with the PMI rising from 55.5 in December to 56.7 at the start of 2017, the strongest rate of improvement for nearly 18 months.
This was due to the fact that new order growth reaches a 14-month high, but businesses kept staffing levels stable.
“The rise in Saudi Arabia’s PMI to the highest level in 17 months is an encouraging start to the year, particularly as it reflects faster output and new order growth in January. Firms also appear to be more optimistic about the coming 12 months,” Khatija Haque, head of Middle East and North Africa research at Emirates NBD, was quoted as saying in a press statement. Read the full report here.
© Express 2017
