U.A.E. Economy Falters With First-Ever Drop in New Orders - Bloomberg:
The second-biggest Arab economy is ending a difficult year on a low as business activity slumps to a level not seen in more than a decade.
New orders for companies in the United Arab Emirates fell for the first time on record in November as the impact of recent price cuts to stimulate demand waned. Output growth and payroll numbers also fell, according to the IHS Markit Purchasing Managers’ Index, which tracks the country’s non-oil economy.
The oil-rich country is grappling with low crude prices as well as global trade headwinds. A strong dollar is also hurting tourism and retail demand in Dubai, the country’s business hub.
“Price discounts that led to marked surges in demand earlier this year are now relatively ineffectual,” IHS Markit economist David Owen wrote. “While the overall decline in sales was marginal, it offered a first hint that the non-oil private sector might endure a period of contraction.”
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