The seasonally adjusted IHS Markit UAE Purchasing Managers' Index, which covers manufacturing and services, stood at 51.1, unchanged from September
DUBAI - The United Arab Emirates non-oil private sector grew in October at the slowest rate since May 2010, matching the low hit the previous month, a survey showed on Tuesday.
The seasonally adjusted IHS Markit UAE Purchasing Managers' Index (PMI), which covers manufacturing and services, stood at 51.1, unchanged from September.
The non-oil sector remained in growth territory - figures above 50 indicate expansion - but the growth rate has slowed down drastically over the past few months.
"UAE companies continued to ease back from the recent growth momentum earlier this year," said David Owen, economist at IHS Markit and author of the report.
New orders were at the lowest they have been since the survey began more than 10 years ago, demonstrating weak demand.
The output price index decreased to 45.1 in October from 47.3 in September, as businesses increased promotional activity, but demand remained sluggish.
"The most problematic indication from the survey was that further reductions in output charges are failing to boost sales. Firms have responded with an even larger price drop, the sharpest on record, but it seems that demand weakness is lingering in the private sector," said Owen.
Employment in the non-oil private sector ticked up in October, to 50.5 from 50.2 in September, but 96% of the survey respondents kept workforce levels unchanged, according to the survey.
The UAE, which has the most diversified economy in the region, raised its growth forecast for 2019 to 2.4% last month, driven by faster growth in the oil sector.
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