PMI sees business conditions declining in May
Business conditions in the non-oil private sector declined during May, according to the Emirates NBD PMI reading (pdf) compiled by Markit. The gauge slipped back to 49.2 in May from 50.1 in April. Last month’s reading had shown business conditions stabilizing with new export orders rising for the fourth month.
A “marginal” decline in new orders and output formed the basis for the contraction, “with panel members citing weaker demand. … Reductions in both output and new business were only marginal, however, and slower than their respective averages,” notes the report.
On a positive note, non-oil private sector business purchasing expanded for the eighth consecutive month during May. “Panel members largely attributed the increase to planned business expansions. Moreover, the rate at which buying levels rose accelerated from April to a four-month high.”