December 5, 2017 / 4:54 AM / 11 days ago

UAE private sector growth speeds up in November, output jumps: PMI

DUBAI, Dec 5 (Reuters) - Growth of the United Arab Emirates’ non-oil private sector accelerated in November because of a sharp increase in output, a survey of companies showed on Tuesday.

The seasonally adjusted Emirates NBD UAE Purchasing Managers’ Index, which covers manufacturing and services, rose to 57.0 last month from 55.9 in October. Above 50 indicates expansion and below shows a contraction.

Khatija Haque, head of regional research at Emirates NBD, said the November data confirmed growth was likely to be strong in the fourth quarter as households and businesses bought more goods before the introduction of a 5 percent value-added tax in January.

“However, the continued softness in employment and lack of wage growth suggests that any boost to household consumption this quarter will likely prove temporary,” she added.

Output growth in November accelerated to 64.3, its highest level since February 2015, from 60.5 in October, while growth in new orders rose to 60.2 from 59.9. But employment growth slipped

to 50.9 from 51.3.

Output prices fell for a third straight month in November, while input price inflation accelerated slightly.

Reporting by Andrew Torchia; Editing by Hugh Lawson; andrew.torchia@thomsonreuters.com; +9715 6681 7277; Reuters; Messaging: andrew.torchia.thomsonreuters.com@reuters.net

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