The impact of the pandemic lingers, the UAE’s non-oil private sector growth weakens-Purchasing Managers Index

This United Arab EmiratesA business survey showed that the non-oil private sector expanded for the seventh consecutive month in June due to coronavirus measures that continued to hinder business activities, but the growth rate was slightly lower than in May.

Seasonally adjusted IHS Markit UAE Purchasing Manager Index The Purchasing Managers Index (PMI), which covers the manufacturing and service industries, fell slightly from 52.3 in April to 52.2 in June, hitting a four-month low.

The output growth remains the same because Shortage of raw materials And the growth of new orders weakened to Exit Due to flight cancellations and other COVID-19-related measures, sales have dropped sharply.

Supply problems pushed up prices, and procurement costs rose to their highest level in three months.

IHS Markit economist David Owen said: “Business conditions continued to improve only at a gradual rate in June, which is a mixed blessing for the UAE’s non-oil industry’s initial recovery from COVID-19.

“The company often mentions that material shortages hinder production growth, while new sales are reduced due to travel restrictions.”

Nevertheless, the continued growth of new business led the company to hire workers in June. Employment has risen for the first time in five months. Although the increase is minimal, it is the fastest since January 2019.

Survey respondents’ expectations for future output continue to improve, but only gradually, because hopes for a recovery in the tourism industry and vaccination programs are offset by the uncertainty of the pandemic’s progress.