The United Arab Emirates' non-oil private sector activity expanded at the slowest rate in over a decade in December, marking the end of a tough year for the economy, a business survey showed on Monday. The seasonally adjusted IHS Markit UAE Purchasing Managers' Index (PMI), which covers manufacturing and services, slowed to 50.2 from 50.3 the previous month. It was the weakest growth rate since the survey began in August 2009.
Readings above 50 indicate expansion while readings below point to contraction. The survey showed output growth slowing for a third consecutive month, with the related index slipping to 51.6, its softest in over eight years, with businesses citing subdued economic conditions.
"The UAE non-oil economy ended the year on a very different note to where it started ... The second half was much more subdued, with sales struggling to rise despite further price cuts," said David Owen, economist at IHS Markit.
Employment rates grew marginally after contracting the previous month. The UAE expects its economy to grow by 2.3% this year, the central bank said on Dec. 4, trimming its forecast from September when it said the Arab world's second-biggest economy would grow by 2.4%.