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According to a monthly survey released on Sunday, non-oil private sector companies in the UAE recruited employees at the fastest rate in the past three and a half years in August due to a strong economic rebound and companies reporting strong sales.
According to the seasonally adjusted IHS Markit UAE Purchasing Managers Index (PMI) of the title, the index outlines the operating conditions of the non-oil private sector economy. The economic conditions have improved significantly, and business activities have grown at the fastest rate since July 2019 .
IHS Markit economist David Owen said that as demand continues to rebound from the pandemic, PMI data shows that business activity in the non-oil industry grew strongly again in August.
“This is increasingly affecting the company’s hiring decisions, and the number of employees is growing at the fastest rate in three and a half years,” he said.
“After six consecutive months of extending the waiting time for imports, the performance of suppliers has also rebounded slightly. In other words, the improvement is only minor, and several companies still find that global transportation problems have caused delays in import arrivals and increased raw material prices,” he Added.
As the outlook remains optimistic, companies hope to obtain investment from the 2020 World Expo and benefit from the general recovery in economic conditions.
“Businesses continue to look forward to the World Expo starting in October 2020, hoping that this will drive investment and growth higher in the coming months. However, as the Covid-19 situation is still uncertain, the prospects for future events have fallen again and are the least important Owen said that he has been optimistic since March.
The UAE’s PMI in August was 53.8, down from 54.0 in July. The reading also indicates that the health of the industry is improving the second fastest in more than two years.
As business activities accelerated to the fastest expansion rate since July 2019, new orders increased for the sixth consecutive month.
The results of the survey showed that domestic sales continued to grow, while export sales declined for the fourth consecutive month due to the increase in Covid-19 cases in certain regions and transportation problems that made the transportation of goods difficult.
At the same time, despite the delay in shipments, the latest data suggests that the situation on the supply side has begun to improve. Overall delivery time has been shortened for the first time since the beginning of the year, although the improvement has been small.
The rate of inflation in the UAE has slowed since July, but it is still one of the fastest inflation in the past three years.
-waheedabbas@khaleejtimes.com
Wahid Abbas
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