Seasonally adjusted IHS Markit UAE Purchasing Manager Index (SMEs), covering the manufacturing and service industries, dropped from 52.7 in April to 52.3 in May, which is still lower than the series average of 54.1.
The coronavirus crisis hit bay Last year, due to the impact of low oil prices and the huge losses caused to important non-oil economic sectors such as tourism, the situation last year was grim.
“The UAE’s non-oil private sector showed signs of further improvement in May, although the growth rate was slightly lower than the recent high in April. New orders were mainly supported by domestic sales, as the latest data indicated a slight decline in export orders,” the economy Scientist David Owen said he is investigating the compiler IHS Markit.
The output measuring business activities also increased for the sixth consecutive month, but the growth rate was the lowest since February, falling from 55.4 in April to 53.6 in May. It is well below the series average of 57.3.
“The employment data for May continues to disappoint, falling for the fourth consecutive month. As the backlog begins to increase and demand increases, it is hoped that companies will soon begin to increase the number of employees to support overall growth,” Irving said.
Employment has only increased by one in the past 17 months in January this year. However, the PMI report stated that the contraction in May was small, with only about 1% of the companies surveyed reporting unemployment.
The report stated: “The future output index continued to rise steadily in May, rising for the sixth consecutive month, showing the highest level of optimism since July 2020.”
However, only about 14% of respondents expect that output will increase in the next 12 months, while 84% of respondents expect no change due to the continuing uncertainty of the pandemic’s trajectory.
last month, DubaiOne of the UAE’s seven emirates and a trade and tourism center said it will allow people vaccinated against COVID-19 to participate in events such as concerts and sporting events.