UAE private sector continues to recover in May

UAE private sector continues to recover in May

The UAE non-oil private sector continued to recover in May as the domestic demand improved on the back of rising confidence surrounding the Covid-19 pandemic, according to the latest IHS Markit UAE Purchasing Managers' Index (PMI) released on Thursday. The private business sector's expectation for the upcoming 12 months climbed again in May, rising for the sixth month in a row to the highest since July 2020. Hopes of output growth were largely attributed to a recovery from the pandemic, with the Expo 2020 also cited. The seasonally adjusted IHS Markit UAE Purchasing Managers' Index (PMI), which shows the performance of the non-oil private secto, posted 52.3 in May, to signal a moderate improvement in business conditions and the sixth in as many months. The index was down slightly from 52.7 in April and remained below the series average of 54.1. The data pointed to solid expansions in output and new business in May as new orders were particularly helped by improving domestic sales, whereas international orders were curbed by Covid-19 restrictions in some destinations for UAE exports. Overall new business growth slipped from April, but was still the second-fastest since August 2019. But competitive pressure and uncertainty related to