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11 December 2023

UAE economy shrugs off oil fall, grows in January

Output growth accelerated slightly in January. (File)

By Reuters

Business activity growth in the UAE’s non-oil private sector hit a three-month high in January, a survey showed on Tuesday, indicating most of the economy is still showing no major impact from the plunge of oil prices.

The seasonally adjusted HSBC UAE Purchasing Managers’ Index, which measures the manufacturing and services sectors, was 59.3 points last month against 58.4 in December. The 50-point mark separates growth from contraction in the survey of 400 firms.

“The pick-up in activity at the start of the year is encouraging, but we continue to expect activity to lose speed into 2015 as low oil prices and weaker demand from key export markets in the Gulf weigh on momentum,” said HSBC Middle East’s chief economist Simon Williams.

Output growth accelerated slightly in January while growth in new orders rose sharply to 67.9 points from 65.4 points.

Output price inflation rose marginally to 50.3 points while input price inflation was flat at 54.2 points. Employment growth increased marginally to 53.2 points.