UAE’s non-oil private sector expands at fastest rate in two years-PMI

This United Arab EmiratesA business survey showed that as demand rebounded from the COVID-19 pandemic, the non-oil private sector expanded in July at the fastest rate in two years.

Seasonally adjusted IHS Markit UAE Purchasing Managers Index The Purchasing Managers Index (PMI), which covers the manufacturing and service industries, rose to 54.0 from 52.2 in June, the highest value since July 2019.

The sharp increase in new orders caused production to soar from 53.6 in June to 57.1 in July.

Companies continue to recruit, and the employment sub-index has reached its highest level since January 2019, but the month-on-month growth was minimal, rising from 50.6 in June to 50.7.

“The UAE Non-oil sector IHS Markit economist David Owen said that the start of the third quarter of this year is very busy, because the company’s new order growth is the largest in two years amid soaring domestic sales and increasing market confidence.

Due to delays in Asian shipments, the input costs of companies rose in July.

“As COVID-19 cases accelerate again in Asia, the company also noted supply chain problem. In fact, since the beginning of the pandemic in April 2020, delivery times have been extended to the greatest extent,” Irving said.

Coronavirus-related measures in other parts of the world led to the third consecutive decline in export sales in July, but the decline was not as pronounced as in June.

With the relaxation of COVID-19 restrictions and Expo 2020 Dubai It will help improve economic conditions later this year.

Nonetheless, the survey showed that overall business expectations fell in July from the previous month, the first time in eight months.