The UAE saw solid results in June according to the latest data from the Purchasing Managers’ Index (PMI) – a composite indicator which is designed to offer an accurate overview of operating conditions in the non-oil private sector economy.
The IHS Markit UAE PMI rose to 50.4 in June, which indicated not only the first improvement in operating conditions for six months, but also the strongest upturn since October last year. However this remains much weaker than the series average.
“At 50.4 in June, the UAE PMI signalled the first stage of recovery in the non-oil private sector. More firms are now seeing an increase in activity as opposed to a decline, while new orders grew at the fastest rate in 10 months. Businesses also saw an improvement in export conditions, as foreign new orders rose for the first time since January, albeit tentatively,” observed David Owen, economist at IHS Markit.
“Despite this positivity, looking at the data over the past few months shows just how large a rebound in output is required to return the UAE economy to pre-Covid-19 levels. Renewed growth in June marked only a slight reprieve from the downturn that reached its peak in April,” he added.
