The UAE's non oil private sector recorded its slowest growth rate in December, according to a recent business survey.
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.
The expectations remained elevated though, as firms held on to hopes that increased investment and tourism will support business activity growth during 2020, the report added.
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.
Key findings
Output increases at slowest rate since September 2011
New business sees renewed upturn, but only slight
Inflationary pressures subdued as firms offer further discounts
"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.
At the same time, new orders grew marginally, linked to soft demand both at home and abroad. The expansion in new business volumes was the weakest seen in the series history, albeit followed the first monthly reduction ever recorded in November.
Meanwhile, selling charges were again lowered in December, as has been the case in each month since October 2018.
Employment rates grew marginally after contracting the previous month.
