Business conditions in the UAE seem to have improved, with the growth of the non-oil private sector accelerating to a ten-month high, partly spurred by increased hiring activity across the country, according to the latest data.
The Emirates NBD Purchasing Managers’ Index for July, a benchmark for the operating conditions in the non-oil private sector, indicated that more companies have hired new employees.
The bank said the pace of hiring quickened to a 14-month high, contrasting with the trend over the second quarter, when employment was either stagnant or barely rising.
“The rate of job creation was the fastest in over a year,” the bank said in a statement sent to Gulf News.
The bank’s findings coincided with the recent employment data released by other analysts. According to the Monster Employment Index, job listings in the UAE went up by 10 per cent in June 2016 compared to a year earlier.
“We expect this positive trend to continue, especially in the UAE, which is seen by economists as the most promising economy in [the Middle East and North Africa],” said Sanjay Modi, managing director for Asia Pacific and Middle Eat at Monster.com.
Jean Paul Pigat, senior economist at Emirates NBD, said their survey in July suggested that “the UAE’s non-oil private sector economy started off the second half of 2016 on a strong footing.”
“It is encouraging that despite relatively week exports, economic momentum is being supported by stronger domestic demand conditions,” he said.
At 55.3, the headline seasonally adjusted PMI was consistent with a “robust improvement in business conditions in July.” The index also indicated a rebound in growth, having slipped to 53.4 in June.
By Cleofe Maceda
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