UAE’s PMI holds at 54.5 in August 2013 on higher output, new orders

By bne IntelliNews September 3, 2013

The UAE’s purchasing managers index (PMI) stood at 54.5 in August 2013, the same as a month earlier, as operating conditions have improved continuously since September 2009 and the latest pace of improvement was above the overall series average, a survey compiled by financial information company Markit Economics for HSBC, showed on Sept 3.

August’s data showed accelerated growth in output levels, while new order intakes at non-oil producing private sector companies continued to rise sharply, Markit said. Workforce numbers grew for the twentieth straight month but companies raised their output charges in response to increased input costs. The growth of output levels at the UAE’s non-oil producing private sector firms accelerated to a six-month high, lifted by increased business and improving market conditions, Markit said. Some companies linked more business to better economic conditions, while others commented on price discounting. New business from abroad increased at a slower pace than in July.

Amid rising output and new orders, employment levels rose in August, the pollster noted. Companies recruited additional workers to meet higher production requirements.

Higher new business was said to be the key driver for an accumulation of backlogs. The increase in work-in-hand was also the sharpest recorded since data collection began in August 2009, Markit said. Input costs rose at the fastest pace in four months in August. Purchase prices and staff charges both increased at sharper rates than those seen in July. Due to higher input costs, non-oil producing private sector companies in the UAE hiked their output charges in August, keeping the current sequence of rising selling prices to three months. 

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